Philips Healthcare reported a 1% decline in sales in its imaging systems division in its 2013 first quarter (end-March 31), as weaknesses in Western Europe and North America affected the company.
The healthcare division overall had sales of $2.776 billion after adjusting for currency changes, down 1% compared with $2.883 billion in the first quarter of 2012. Sales in the division's Imaging Systems unit fell at a rate in the high single digits.
The division's sales in mature markets fell 1%, with declines in the midsingle digits in North America and Europe, while sales in other mature markets showed double-digit growth. Sales in growth geographies fell 2% on a currency-adjusted basis, with growth in the high single digits in China and low single digits in Latin America. This was offset by double-digit declines in Russia, the Middle East, and Eastern Europe.
Earnings before interest, taxes, and amortization (EBITA) in the healthcare division were $290 million in the most recent period, compared with $264 million in the same period of 2012. EBITA margin improved to 10.4% of sales, compared with 9.1% in the same quarter the previous year.
The equipment orders in the healthcare division's Patient Care & Clinical Informatics and Imaging Systems units showed a decline. Equipment orders fell at a high-single-digit rate due to weak markets in Western Europe, while orders in North America showed a double-digit decline, reflecting the continued market uncertainties, according to the company. Orders in growth regions fell 4%.
