Philips Healthcare sees 7% sales growth in Q2

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Royal Philips Electronics has reported a 5 percent growth in comparable sales over the previous year’s second quarter, bolstered by 7 percent growth in Philips Healthcare, which produced "a solid sales increase across all businesses and a 22 percent increase in growth geographies,” according to the company.

Sales for the 2012 second quarter totaled EUR5.9 billion ($7.15 billion USD). Overall, the 2012 second quarter sales for Philips Healthcare were EUR2.41 billion ($2.92 billion USD), which was $333 million higher than sales in the 2011 second quarter.

The company said its healthcare unit’s currency comparable equipment order intake increased 4 percent year-on-year, with high single-digit growth in imaging systems, double-digit growth in patient care and clinical informatics and mid-single-digit growth in home healthcare technologies.

Geographically, equipment orders in North American markets were 3 percent lower than in the 2011 second quarter, while orders in Western Europe declined by 6 percent. However, equipment orders in growth geographies were 13 percent higher, while equipment orders in Japan showed strong double-digit growth.

“There is no denying that the global economy is weaker now than it was just three months ago, especially in Europe, which accounts for approximately 25 percent of our revenue," Frans van Houten, CEO of Royal Philips Electronics, said in a statement. “We continue to take actions to mitigate the risks from the increased economic headwinds globally, and we remain confident in our ability to further improve our performance.”

Earnings before interest, taxes and amortization increased by EUR57 million ($69.15 million USD) year-on-year to EUR333 million ($403.93 million USD), according to Philips.

The company expects its restructuring and acquisition-related charges in the 2012 third quarter to total approximately EUR15 million ($18.19 million USD).