Growth in its Image-Guided Therapy (IGT) and Ultrasound units helped Philips Healthcare's Diagnosis and Treatment businesses achieve a 5% increase in sales for its fourth quarter. Sales were flat, however, in its Connected Care and Health Informatics businesses.
For the period (end-December 31, 2018), Philips reported 2.2 billion euros ($2.51 billion U.S.) in sales for its Diagnosis and Treatment businesses, up 5% on a comparable basis from the 2.09 billion euros ($2.39 billion) in the fourth quarter of 2017. Growth was driven by double-digit gains in IGT and high-single-digit growth in ultrasound. Parent Royal Philips also noted that its Diagnostic Imaging business achieved double-digit growth in order intake.
Overall, the Diagnosis and Treatment businesses had adjusted earnings before interest, taxes, and amortization (EBITA) of 294 million euros ($335.8 million) in the fourth quarter, up from 266 million euros ($303.9 million) in the same period a year ago.
Meanwhile, the vendor's Connected Care and Health Informatics businesses produced 936 million euros ($1.07 billion) in sales, flat on a comparable basis with the 912 million euros ($1.04 billion) reported in the fourth quarter of last year. Low-single-digit growth in its Therapeutic Care and Monitoring and Analytics businesses were offset by a low-single-digit decline in healthcare informatics, according to the vendor.
However, Philips said that it produced double-digit growth in order intake, driven by its Monitoring and Analytics and Health Informatics businesses. Overall, the Connected Care and Health Informatics businesses had adjusted fourth-quarter EBITA of 114 million euros ($130.2 million), down from 169 million euros ($193.1 million) in the fourth quarter of 2017.
Thanks to double-digit growth in IGT and ultrasound, as well as low-single-digit growth in diagnostic imaging, the company's Diagnostic and Treatment businesses had 2018 sales of 7.25 billion euros ($8.28 billion), up 7% on a comparable basis from the 6.89 billion euros ($7.87 billion) reported in 2017. Adjusted EBITA reached 696 million euros ($795.1 million), compared with 543 million euros ($620.3 million) last year.
The firm's Connected Care and Health Informatics businesses generated 3.08 billion euros ($3.52 billion) in sales, flat on a comparable basis from the 3.16 billion euros ($3.61 billion) produced a year ago. The flat sales growth reflected low-single-digit growth in healthcare informatics and flat results in its Monitoring and Analytics and Therapeutic Care businesses, Philips said. The Connected Care and Health Informatics businesses had adjusted EBITA of 341 million euros ($389.6 million), down from 372 million euros ($425 million) reported in 2017.
![Examples of ultrasound findings and techniques. (A) Images in a 39-year-old male patient with a mass in the left thigh. The mass is heterogeneous on the B-mode US image (compared with the patient in D) and showed increased microvascularity (superb microvascular imaging [SMI]) and shear-wave elastography (SWE) values. Undifferentiated pleomorphic sarcoma was diagnosed at biopsy (with pleomorphic rhabdomyosarcoma in surgical specimen). (B) Images in an 18-year-old male patient with a mass in the left leg. The mass is hypoechoic on the B-mode image, with no other findings suggestive of malignancy. The lesion is in contact with the cortex of the tibia, which is slightly irregular. CT revealed a doubtful anteromedial tibial erosion. The microvascular study demonstrated high vascularization, suggestive of malignancy. Periosteal Ewing sarcoma was diagnosed with both histologic and immunohistochemical confirmation. (C) Images in a 69-year-old female patient with a lump growing on the outside of the left leg. Multiple SWE examinations were performed (please note the high values obtained in the measurements, whereas the color map highlights the stiffness relative to adjacent tissues). SMI showed areas of increased vascularization to target for sampling. Undifferentiated spindle cell sarcoma was diagnosed at biopsy, with residual leiomyosarcoma in the surgical specimen after neoadjuvant therapy. (D) Images in a 56-year-old female patient with a mass in the right thigh. The mass is heterogeneous at both B-mode ultrasound (similar to patient A) and MRI (coronal T2-weighted spectral attenuated inversion recovery [SPAIR]; T1-weighted pre-contrast and postcontrast imaging), which even shows uptake after the administration of paramagnetic contrast material, which is traditionally suggestive of malignancy. Low values at SMI and elastography are suggestive of benignity. Spindle cell lipoma was diagnosed at biopsy, with atypical spindle cell lipomatous tumor in the surgical specimen.](https://img.auntminnie.com/mindful/smg/workspaces/default/uploads/2026/08/images-radiol250278fig2.APCFLSvX6p.jpg?auto=format%2Ccompress&dpr=2&fit=crop&h=167&q=70&w=250)
