Royal Philips Electronics reported today that its Philips Medical Systems division enjoyed growth in both sales and segment profit for the company's third quarter (end-September 30), with strong growth occurring in CT and x-ray.
For the quarter, the medical division had sales of 1.575 billion euros ($1.974 billion U.S.), up 3% in nominal terms and 7% in comparable terms compared with the 1.531 million euros ($1.92 billion U.S.) booked in the third quarter of 2005. For the period, the Andover, MA-based firm produced earnings before interest and taxes (EBIT) of 186 million euros ($233.2 million U.S.), compared with EBIT of 155 million euros ($194.4 million U.S.) a year ago.
The sales were a record for a third quarter, Philips said. The 6% comparable sales gains were primarily due to double-digit growth in CT and x-ray, according to the vendor. The Asia-Pacific region was the main geographical contributor to the division's growth.
Equipment order intake was up 6% on a currency-comparable basis, led by MR and healthcare informatics. iSite PACS orders more than doubled compared with the third quarter of 2005, Philips said.
Philips saw profitability across most of its businesses, particularly CT. The performance of Witt Biomedical has also exceeded expectations, Philips said.
Excluding charges relating to its pending acquisition of MRI magnet supplier Intermagnetics General and an accrual in the fourth quarter of 2005 related to MedQuist, Philips expects its fourth-quarter margin to be above last year's figures.
By AuntMinnie.com staff writers
October 16, 2006
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