Philips makes more money on fewer sales
- 27 January 2010
Philips has announced a 1% decline in comparable sales in its healthcare sector despite strong growth in emerging markets.
The company reported sales of €2.4 billion in Q4 2009, compared to €2.6 billion in Q4 2008. However, the company’s earnings before interest, tax and amortisation increased from €343m in Q4 2008 to €452m in Q4 2009.
Philips said that higher orders of imaging systems, clinical care systems and healthcare informatics were driven by international markets, while declines in its North American market were less severe than in previous quarters.
It also attributed its improved position to strict cost management and ongoing improvement in higher-margin businesses, such as customer services and home healthcare solutions.
Gerard Kleisterlee, president and chief executive officer of Royal Philips electronics said: “I am particularly pleased as our improved performance is visible across all three operating sectors.
“Despite continuing weaknesses in the US market, our healthcare sector managed to deliver another bumper quarter with sales broadly on par with the strong performance of last year and with significantly higher earnings.”
Achievements for the company in Q4 included a multi-million dollar imaging systems deal in a 360 bed facility in San Diego and a €36m deal with Suzhou Municipal Government in China to establish an industrial campus for imaging systems.
In addition, the company introduced patient monitoring solutions to the Indian market and signed a five-year agreement with Dutch insurer Achmea Health to cooperate in the development of care systems aimed at enabling chronic disease suffers to manage their health at home.
Philips says that plans for the near future include introducing its medical alert service in the first quarter of 2010, reflecting its commitment and support independent living for the elderly and chronically ill.
The company has showed considerable growth since the last quarter where sales amounted to €1.8 billion euros and EBITA was at €175m.
Link: Philips
