Higher sales in all business segments helped Philips Healthcare to 5% sales growth in its third quarter before factoring in currency effects, but lower earnings in its imaging business affected profitability.
For the period (end-September 30), the Andover, MA-based firm had sales of 1.806 billion euros ($2.42 billion U.S.), up 5% before currency effects and 14% after adjusting for currency changes. That compares to the 1.585 billion euros ($2.13 billion U.S.) in sales posted in the same period a year ago.
Higher earnings at Philips' clinical care systems and home healthcare solutions units were offset by lower earnings at the vendor's imaging business, which was impacted by lower volume and margin pressures. The company had earnings before interest, taxes, and amortization (EBITA) of 197 million euros ($264.3 million U.S.).
When adjusted for a 45 million euro ($60.4 million U.S.) gain on the sale of Philips Speech Recognition Systems and 17 million euros ($22.8 million U.S.) of acquisition and integration-related charges, EBITA was down from the 169 million euros ($226.8 million U.S.) reported for the third quarter of 2007.
In other developments, Philips said that it will accelerate a number of initiatives to improve margins and to further optimize its operations structure, particularly in imaging systems. These efforts are expected to lead to charges of approximately 50 million euros ($67.1 million U.S.) in the fourth quarter.
Related Reading
Philips, Steris team on hybrid ORs, October 7, 2008
Philips files PET/CT suit against Siemens, October 2, 2008
Philips, University of Urbino ink contrast deal, September 24, 2008
Philips shows integrated oncology suite, September 23, 2008
Philips partners with Dutch hospital, September 10, 2008
Copyright © 2008 AuntMinnie.com
