Strong sales in its image-guided therapy business helped to lift the financial performance of Philips Healthcare in the fourth quarter of 2016.
For the period (end-31 December), the company's Diagnosis and Treatment segment produced 2.03 billion euros in sales, up 3% on a currency-comparable basis from the 1.98 billion euros generated in the fourth quarter of 2016. Double-digit growth in its image-guided therapy business was offset by a low-single-digit drop in ultrasound, while the company's diagnostic imaging sales were in line with the fourth quarter of 2015, Philips said.
The segment produced adjusted earnings before interest, taxes, and amortization (EBITA) of 284 million euros, compared with adjusted EBITA of 221 million euros in the fourth quarter of 2015. The increase was attributed to improvements in image-guided therapy and diagnostic imaging, Philips said.
On a geographical basis, the Diagnosis and Treatment segment had mid-single-digit growth in growth geographies, including double-digit growth in Latin America and flat growth in China. Sales in mature geographies grew in the low single digits, thanks to mid-single-digit growth in North America and low-single-digit growth in other mature geographies. Growth was partly offset, however, by a low-single-digit decline in Western Europe, according to the vendor.
Meanwhile, the firm's Connected Care and Health Informatics segment generated 955 million euros in sales, up 4% on a currency-comparable basis from the 916 million euros reported in the same period last year. Growth was driven by mid-single-digit growth in population health management as well as patient care and monitoring solutions. The company did have a low-single-digit decline in healthcare informatics solutions and services. The segment had adjusted EBITA of 177 million euros, up from 165 million euros in the fourth quarter of 2015.
