A surge in healthcare sales, with the strongest contribution from its Patient Care and Clinical Informatics division, has made Philips Healthcare's first quarter a very positive one.
Philips Healthcare reported sales of 2.209 billion euros ($2.902 billion U.S.), representing growth of 9% after currency adjustments, compared with revenues of 1.971 billion euros ($2.589 billion) in the same quarter of the previous year.
The healthcare division's earnings before interest, taxes, and amortization (EBITA) were 225 million euros ($295.6 million) in Q1 2012, compared with 199 million euros ($261.4 million) a year ago.
Excluding restructuring and acquisition-related charges, EBITA grew by 19% compared to the first quarter a year ago.
The company said that higher sales volume in the first quarter of 2012 resulted in higher earnings at its Imaging Systems and Patient Care and Clinical Informatics divisions. Sales in growth geographies, which included China, increased by 27%, while sales in mature geographies grew by 5% for the two divisions. Specifically, growth rates of 5% in Europe and 4% in North America were reported.
Philips Healthcare also reported mid-single-digit growth in its Customer Service and Home Healthcare Solutions divisions.
Order intake for the Imaging Systems division was at the same level as in the first quarter of the prior year. However, the Patient Care and Clinical Informatics group experienced double-digit order growth. Equipment orders in North America grew by 5% compared to orders received in Q1 2011, but orders declined by 1% in Europe, the company reported. Equipment orders in growth geographies increased by 22%.
