Softness in its imaging systems business contributed to a 2% decline in comparable sales for Philips Healthcare in its first quarter.
For the period (end-March 31), the Andover, MA-based vendor had sales of 1.741 billion euros ($2.3 billion), up 18% on a nominal basis but down 2% on a comparable basis from the 1.474 billion euros ($1.94 billion) reported in the first quarter of 2008.
Growth in its home healthcare solutions and customer services operations was more than offset by lower sales in its imaging systems, patient monitoring, and clinical care systems units, according to the Andover, MA-based vendor. Geographically, sales growth was limited to emerging markets in Central and Eastern Europe, the Middle East, and India, Philips said.
The company experienced a 17% decline in equipment order intake on a comparable basis, with a particular drop experienced in its imaging systems business, Philips said.
Philips had earnings before interest, taxes, and amortization (EBITA) of 75 million euros ($98.9 million), down from EBITA of 131 million euros ($172.8 million) a year ago. EBITA was negatively impacted by lower volume in its imaging systems, clinical care systems, and healthcare informatics businesses, Philips said. In addition, the firm also experienced adverse currency effects as well as pricing pressure, particularly in its North American imaging systems operations.
Philips said it expects the healthcare market to remain weak, particularly in the U.S. In addition, it said it anticipates it will have restructuring and acquisition-related charges of 30 million euros ($39.7 million) in its second quarter, with further reduction in its cost base expected going forward.
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