Philips posts profit increase despite revenue dip

Declines in its imaging systems unit contributed to slightly lower comparable sales in Philips Healthcare's fourth quarter.

For the period (end-December 31), the Andover, MA-based vendor had sales of 2.405 billion euros ($3.4 billion U.S.), down 29% on a nominal basis and 1% on a comparable basis from the 2.569 million euros ($3.63 billion U.S.) posted in the fourth quarter of 2008.

Sales gains in its home healthcare solutions and customer services units were offset by declines in its imaging systems and patient monitoring operations, according to the vendor. Comparable sales grew during the quarter in international markets, while they decreased in North America, Philips said.

Philips had earnings before interest, taxes, and amortization (EBITA) of 479 million euros ($677.3 million U.S.), up from 425 million euros ($600.1 million U.S.) in the same period a year ago. The company had higher EBITA in all of its businesses, including imaging systems.

Philips also pointed to increases in currency-comparable equipment order intake, which grew 7% in the fourth quarter. Higher orders in its imaging systems, clinical care systems, and healthcare informatics operations were driven by both emerging and mature sectors of the international market, Philips said. North American market declines were also less severe than in prior quarters, Philips said.

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