Charges hurt Philips earnings

Multimodality vendor Philips Medical Systems recorded 2004 sales of 5.89 billion euros ($7.68 billion U.S.), down 2% compared with the 5.99 billion euros ($7.8 billion) posted in 2003, but up 4% on a comparable basis.

Nominal sales growth was hampered by a lower U.S. dollar, according to the Andover, MA-based vendor. CT and x-ray sales were particularly strong, and all regions contributed to the comparable sales growth, Philips said.

The company had net income of 34 million euros ($44.3 million), compared with net income of 431 million euros ($561.8 million) in 2003. Profitably was negatively affected by 590 million euros ($769 million) of impairment charges for the company's MedQuist operation, and 133 million euros ($173.4 million) settlement net of recoveries from insurance for litigation with Volumetrics.

Main contributors to underlying income improvement were the vendor's customer service, cardiac and monitoring systems, and CT and ultrasound units.

By AuntMinnie.com staff writers
January 31, 2005

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