Philips Healthcare (NYSE:PHG) helped its parent company, Royal Philips Electronics, back to 2nd-quarter profitability with comparable sales growth of 7%.
The Andover, Mass.-based healthcare conglomerate, the world’s 7th-largest medical device company, reported earnings before interest, taxes and amortization of €333 million ($404.1 million) on sales of €2.41 billion ($2.93 billion) for the 3 months ended June 30.
That amounts to top-line growth of 16.0%; adjusted for exchange rates, Philips Healthcare’s sales were up 7%, according to a regulatory filing.
"Healthcare comparable sales grew by 7%, with a solid sales increase across all businesses and a 22% increase in growth geographies. Currency-comparable order intake increased by 4% year-on-year, with equipment order growth seen at both imaging systems and patient care & clinical informatics," according to the SEC filing. "Reported EBITA margin for the quarter was 13.8%."
"The improved performance in the second quarter of 2012 is encouraging proof that our Accelerate! transformation program, and the relentless focus on execution, are enabling us to continue on the path to achieve our 2013 mid-term financial targets.
"The initiatives to stimulate growth show promising results, especially in the light of the weaker economic situation. Healthcare sales are growing well at 7%, and order intake showed solid growth, whereby a decline in Europe was more than offset by increases in the rest of the world," CEO Frans van Houten said in prepared remarks. "There is no denying that the global economy is weaker now than it was just 3 months ago, especially in Europe, which accounts for approximately 25% of our revenue. We continue to take actions to mitigate the risks from the increased economic headwinds globally, and we remain confident in our ability to further improve our performance."
Overall, Philips reported profits of €167 million ($202.7 million), or €0.18 (22¢) per share, on sales of €5.89 billion ($7.15 billion) – for a sales increase of 13.0%.
PHG shares closed up 5.5% today, at $20.70, on the news.
