Philips’ sales slide 6% amid slowdown in imaging installations, procedures
Royal Philips saw its sales slide by 6% during the second quarter that ended June 30, as providers put off procedures amid the COVID crisis, the imaging giant announced Monday.
The downturn was worse in its diagnosis and treatment business line, which recorded a 9% sales decline compared to last year’s numbers, driven by postponed elective procedures and system installations. While the Amsterdam-based manufacturer logged diagnostic imaging sales in line with Q2 2019, Philips’ ultrasound business showed a “mid-single-digit decrease,” and image-guided therapy dropped by double digits.
However, the company’s intake of new orders swelled 27%, fueled by demand for CT imaging systems, hospital ventilators and patient monitors. Overall, Philips recorded more than $5 billion (USD) in sales for the second quarter, with income from continuing operations of $244 million, an 18% dip compared to the same period in 2019.
Officials said they expect a return to “growth and improved profitability” in 2020’s back half, assuming that elective procedures normalize, the firm executes booked orders for its diagnostic systems, and consumer demand rallies.
“I am pleased at the way we have performed, and I am grateful and proud of how all our employees have stepped up,” CEO Frans van Houten said in a statement shared July 20.
Officials also highlighted recent announcements from the quarter, including new cabins for safer imaging during the pandemic, and FDA clearance to market its ultrasound systems for COVID-19 assessment.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.