Solid sales increases in all businesses contributed to 7% growth in comparable, currency-adjusted sales for Philips Healthcare in its third quarter, although the division's parent company said it will cut 4,500 jobs in a restructuring.
For the period (end-September 30), the company recorded sales of 2.08 billion euros ($2.8 billion U.S.), up 7% on a currency-adjusted basis and flat on a nominal basis compared with the 2.07 billion euros ($2.87 billion U.S.) reported in the third quarter of 2010. Sales gains were seen in all businesses, highlighted by double-digit growth in the company's Patient Care and Clinical Informatics unit, according to the company.
Earnings before interest, taxes, and amortization (EBITA) slipped, however, from 282 million euros ($391.5 million U.S.) in the third quarter of 2010 to 261 million euros ($362.3 million U.S.). Philips attributed the EBITA decline to higher selling and R&D costs in its Imaging Systems unit, due to operational investments in new product rollouts.
Philips also reported a 5% increase in currency-comparable equipment orders, including a 6% increase in North American equipment orders. Equipment orders increased 3% in markets outside of North America and 15% in growth-market geographies. However, these gains were offset by order intake declines in Europe, Philips said.
In Philips corporate news, the company said it's moving forward with its Accelerate! restructuring initiative, which includes a cost-savings program aimed at yielding 800 million euros ($1.1 billion U.S.) in savings. As part of this program, 4,500 positions will be cut across the company, 1,400 of which will be in the Netherlands.
