The profit picture improved at Philips Medical Systems in the first quarter (end-March 31), although sales edged lower due to the impact of a weaker U.S. dollar.
For the quarter, the Andover, MA-based division of multinational firm Royal Philips Electronics recorded sales of 1.258 billion euros ($1.484 billion), down 5% compared with revenues of 1.329 billion euros ($1.568 billion) in the first quarter of 2003.
The medical division posted an operating profit of 92 million euros ($108.7 million) for the most recent quarter, compared with 70 million euros ($82.6 million) in the corresponding period of 2003. The unit's income as a percent of sales improved to 7.3%, compared with 5.3% in the first quarter of 2003, primarily due to productivity improvements and cost control.
Philips said that on a nominal basis (excluding currency effects), sales rose 4% in the quarter, driven by growth in x-ray, CT, patient monitoring, and medical information technology products. North America, Latin America, and the Asia-Pacific region were bright spots. Philips predicted increasing competition and price pressure in the healthcare industry as a result of ongoing consolidation, however.
By AuntMinnie staff writersApril 22, 2004
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