Philips sees uptick in Q2 sales, driven partly by imaging

Philips Healthcare saw its sales improve by 8 percent on a comparable quarter-over-quarter basis, driven by high single-digit growth in all its businesses.

Specifically, the total healthcare sales were EUR 2.08 billion (USD 2.9 billion) in the second fiscal quarter of the 2011, compared with EUR 2.07 billion (USD 2.88 billion) in last year’s second quarter. The company said that sales experienced “notably high-single-digit growth in home healthcare and imaging systems.”

From a regional perspective, comparable second quarter fiscal sales in mature markets grew 4 percent year-over-year, with sales in North America 8 percent higher than in the second quarter of 2010. Philips also reported that growth-market sales grew 22 percent, with “notably better sales at imaging systems.”

The net operating capital for the healthcare division dropped EUR 2.01 billion (USD 2.8 billion) on a quarter-over-quarter basis to EUR 7.5 billion (USD 10.43 billion), “mainly due to currency effects and goodwill impairment,” according to the company.

Finally, the healthcare portion of Philips also grew in employees by 2,125 to a total FTE base of 36,469.

Overall, the parent company, Royal Philips Electronics, reported a net loss of EUR 1.35 billion (USD 1.87 billion) in the second quarter, compared with last year’s second quarter net income of EUR 262 million (USD 364 million).

Concerning the company’s performance, Frans van Houten, CEO of Royal Philips Electronics, said, “We are not yet satisfied with our current financial performance given the ongoing economic challenges, especially in Europe, and operational issues and risks. We do not expect to realize a material performance improvement in the near term. … We are taking the right steps to achieve our 2013 mid-term financial targets."

Around the web

HHS has thought through the ways AI can and should become an integral part of healthcare, human services and public health. Last Friday—possibly just days ahead of seating a new secretary—the agency released a detailed plan for getting there from here.

Philips is recalling the software associated with its Mobile Cardiac Outpatient Telemetry devices after certain high-risk ECG events were never routed to trained cardiology technicians as intended. The issue, which lasted for two years, has been linked to more than 100 injuries. 

Heart Rhythm Society President Kenneth A. Ellenbogen, MD, detailed a new advocacy group focused on improving EP reimbursements, patient care and access. “If you’re not at the table, you’re on the menu," he said.