A strong performance in its HealthTech portfolio -- including its Philips Healthcare business -- helped spur positive financial results for the third quarter (end-September 30) at Royal Philips Electronics.
For the period, the company's Diagnosis and Treatment segment saw third-quarter sales of 1.635 billion euros ($1.779 billion), up 5% before currency adjustments from sales of 1.556 billion euros ($1.693 billion) in the third quarter of 2015. After currency adjustments, sales rose 6%.
Quarterly operating income for the segment rose to 165 million euros ($180 million), compared with 98 million euros ($107 million) in the corresponding quarter the year before. Operating income as a percent of sales rose to 10.1%, compared with 6.3% in the same period a year ago.
The company said the numbers were driven by double-digit growth in image-guided therapy sales and growth in the low single digits for its diagnostic imaging operations. This was partially offset by a decline in the low single digits for Philips' ultrasound operations.
On a geographic basis, growth geographies showed double-digit growth, mostly driven by China and Latin America, according to the company. Mature regions demonstrated growth in the low single digits, driven by North America, which was partially offset by a decline in the midsingle digits in other mature geographies. Sales in Western Europe were comparable to those in the third quarter of 2015, the company reported.
The company's Connected Care and Health Informatics business posted sales of 742 million euros ($807 million) in the most recent quarter, compared with 732 million euros ($807 million) in the same quarter of 2015, a number that was up 1% before currency adjustments but flat after adjusting for currency changes.
