Philips’ healthcare revenue, earnings increase in 3rd quarter
For the third quarter of 2015, Philips had comparable overall sales growth of 2 percent versus the same quarter last year. Comparable sales in its healthcare sector increased 3 percent, including mid-single-digit growth in its imaging systems group.
The earnings before interest, taxes and amortization (EBITA) in the healthcare sector increased 9.6 percent. When excluding restructuring and acquisition-related charges and other items, EBITA accounted for 12.3 percent of sales in the third quarter of 2015 compared with 12 percent of sales in the third quarter of 2014.
“The increase was largely driven by cost productivity, partly offset by negative currency impacts, higher planned expenditure for growth initiatives, and increases in Quality & Regulatory spend, including at the Cleveland site,” Philips said in its earnings report.
Philips noted a few highlights in its healthcare sector during the third quarter. The company signed a multi-year technology agreement with the Catharina Hospital, the largest cardiovascular center in the Netherlands, which will expand Philips’ strength in interventional cardiology.
Philips also acquired Blue Jay Consulting, a company that provides consulting services to U.S. hospital emergency departments. In addition, it expanded the capabilities of the HealthSuite digital platform, a secure cloud infrastructure for health data and devices. Further, Philips introduced HeartModel, an ultrasound tool with anatomical intelligence.
“We are encouraged by continued sales growth and the positive order intake across the majority of our markets,” Philips CEO Frans van Houten said in a news release. “Our focus on delivering meaningful innovations that enhance patient care and improve efficiencies continues to pay off, for example with the introduction of HeartModel, an ultrasound tool with anatomical intelligence, designed to enhance diagnosis and planning in cardiology.”
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.