A slowdown in U.S. sales due to the Deficit Reduction Act (DRA) of 2005 made an impact on second-quarter financial results at the Philips Medical Systems division of Dutch industrial conglomerate Royal Philips Electronics.
For the period (end-June 30), Philips Medical Systems posted sales of 1.65 billion euros ($2.28 billion), up 4% when adjusted for currency fluctuations. The company said that the decline in U.S. sales was offset by growth in other international regions.
The medical division posted earnings before interest, taxes, and amortization of 218 million euros ($301.1 million), compared with EBITA of 210 million euros ($290 million) in the second quarter of 2006.
Philips reported that sales growth was driven by its patient monitoring, cardiac care, customer service, and x-ray divisions, while declines occurred at its CT division and Laurel, NJ-based MedQuist speech recognition unit. Philips took a one-time charge of 35 million euros ($48.3 million) for a write-down of goodwill related to MedQuist.
By AuntMinnie.com staff writers
July 19, 2007
Related Reading
Philips to provide disaster recovery for VA, July 11, 2007
Philips reviewing MedQuist stake, July 10, 2007
Philips gets rights to harmonic ultrasound patents, June 28, 2007
Philips begins trial of PET/MR CAD software, June 27, 2007
Philips launches 3D TEE probe at ASE show, June 22, 2007
Copyright © 2007 AuntMinnie.com
