Philips Healthcare posts higher sales, lower profit in Q2

Philips posted strong sales with nuclear medicine and MR. Source: Philips Healthcare

Royal Philips Electronics has reported an increase in sales and a lower net income for its healthcare business in its fiscal 2008 second quarter.

For the quarter, Philips Healthcare reported sales of $2.87 billion (€1.8 billion), compared with $2.64 billion (€1.63 billion) in the same quarter last year—a 3 percent increase in sales, driven by growth in customer services, home healthcare solutions, clinical care systems and patient monitoring.

The healthcare division also reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $311 million (€195 million), due to a $56 million (€35 million) acquisition and integration-related charge that offset sales generated by the recently acquired respiratory product developer Respironics, according to Philips.

“Our healthcare sector posted strong results in home healthcare solutions, patient monitoring and clinical care systems. Imaging systems posted lower results but continued to increase its order book backlog, with a better product mix, which gives us confidence for the full year,” said Gerard Kleisterlee, president and CEO of Royal Philips Electronics.

Imaging systems did report strong growth in MR and nuclear medicine, more than offset by a decline in CT as a result of lower-value mix, partly in anticipation of commercial delivery of the new Brilliance iCT scanner later in the year, Philips said.

For 2008, the company reported that acquisition and integration charges related to the acquisitions of Respironics, Visicu and Emergin are estimated at approximately $160 million (€100 million), of which Philips expects approximately $48 million (€30 million) to impact EBITDA in its fiscal 2008 third quarter.