Philips releases earnings report

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Royal Philips Electronics has released its earnings report for the first quarter of 2011. Overall, Philips’ group sales were EUR 5.3 ($7.5 USD) billion, with EBITA of EUR 437 ($622 USD) million, or 8 percent of sales.

“In the first quarter of 2011, healthcare showed mid-single-digit comparable sales growth, with particular strength in patient care and clinical informatics...EBITA in the first quarter improved at healthcare…We expect headwinds in 2011 due to the Japan tragedy, impacting our revenue and supply chain. We have a dedicated team working to mitigate the consequences and risks,” according to Frans van Houten, president and CEO of Royal Philips Electronics.

Specific financial highlights from Philips Healthcare include:

  • Currency-comparable equipment order intake was in line with Q1 2010. Solid equipment orders were seen at patient care and clinical informatics, while imaging systems equipment order intake was lower than in Q1 2010. Excluding the impact of large multi-year orders in Q1 2010, mostly related to imaging systems, equipment order intake grew by 5 percent. Equipment orders in markets outside of North America were flat year-on-year, with growth-market equipment orders growing by 28 percent. Equipment orders in North American markets were in line with Q1 2010.
  • Nominal sales grew 8 percent compared to Q1 2010. Comparable sales were 5 percent higher year-on-year, with solid increases in all businesses. Notably higher growth was seen at patient care and clinical informatics and home healthcare solutions. From a regional perspective, comparable sales in North America were 6 percent higher than in Q1 2010, while in mature markets outside North America sales grew by 3 percent. Growth-market sales growth was 22 percent, with notably better sales in India and China, particularly at imaging systems.
  • EBITA increased by EUR 33 ($47 USD) million year-on-year to EUR 199 ($283 USD) million, or 10.1 percent of sales. The EBITA improvement was driven by higher sales across all businesses, particularly patient care and clinical informatics, partly offset by higher selling and research and development costs to support growth initiatives.