Strong sales in its Image-Guided Therapy business helped to lift the financial performance of Philips Healthcare in the fourth quarter of 2016.
For the period (end-December 31), the company's Diagnosis and Treatment segment produced $2.18 billion in sales, up 3% on a currency-comparable basis from the $2.12 billion generated in the fourth quarter of 2016. Double-digit growth in its Image-Guided Therapy business was offset by a low-single-digit drop in Ultrasound, while the company's Diagnostic Imaging sales were in line with the fourth quarter of 2015, Philips said.
The segment produced adjusted earnings before interest, taxes, and amortization (EBITA) of $305.3 million, compared with an adjusted EBITA of $237.6 million in the fourth quarter of 2015. The increase was attributed to improvements in Image-Guided Therapy and Diagnostic Imaging, Philips said.
On a geographical basis, the Diagnosis and Treatment segment had a midsingle-digit rise in growth geographies, including double-digit growth in Latin America and flat growth in China. Sales in mature geographies grew in the low single digits, thanks to midsingle-digit growth in North America and low-single-digit growth in other mature geographies. Growth was partly offset, however, by a low-single-digit decline in Western Europe, according to the vendor.
Meanwhile, the firm's Connected Care and Health Informatics business generated $1.027 billion in sales, up 4% on a currency-comparable basis from the $984.8 million reported in the same period last year. The increase was driven by midsingle-digit growth in Population Health Management as well as Patient Care and Monitoring Solutions. The company did have a low-single-digit decline in Healthcare Informatics, Solutions and Services. The segment had adjusted EBITA of $190.3 million, up from $176.3 million in the fourth quarter of 2015.
