Philips Healthcare sees slight Q3 downturn

Philips Healthcare sales declined 4 percent for the fiscal 2009 third quarter (end-Sept. 30), as double-digit growth in emerging markets was offset by declines in U.S. sales of imaging systems, patient monitoring and clinical care systems.

Equipment order intake declined 7 percent, reflecting a weak U.S. market for medical imaging equipment. The decline was “partly offset by growth outside North America for imaging systems and growth across most businesses in emerging markets.”

The healthcare unit realized earnings before interest, taxes, depreciation and amortization (EBITA) of EUR215 million ($319.35 million U.S.), or 11.8 percent of sales, excluding EUR40 million ($59.42 million) of restructuring and acquisition-related charges. The comparable figure in the third quarter of 2008, which excluded a EUR45 million gain on the sale of Speech Recognition Systems, was EUR160 million ($66.84 million), or 8.9 percent of sales.

Royal Philips Electronics President and CEO Gerard Kleisterlee said that the company will continue to invest in its healthcare portfolio.

Philips Healthcare said that its EBITA improved most for the customer services division, “mainly driven by operational improvement and strict cost management.”

The company said that its 2009 fourth quarter restructuring and acquisition-related charges are expected to total around EUR35 million ($51.98 million).