• buy 
• sell $
• about
• My DOTmed 

Philips has announced Q4 2008 earnings. Philips reported strong sales growth from Healthcare, a modest decline in sales at Lighting and 24 percent lower sales at Consumer Lifestyle, bringing total sales to €7,623 million, a nominal decline of 9 percent compared to Q4 2007.

Chief Executive Gerard Kleisterlee said that while the company is pleased with the performance of Healthcare, fourth-quarter results are a reflection of the severe impact of the global financial and economic crisis.



Some key highlights pertaining to the Philips Healthcare business:

- Philips Healthcare reported 9 percent comparable sales growth, driven by robust growth at Imaging Systems, Healthcare Informatics and Customer Services. Comparable sales at Clinical Care Systems increased by 3 percent. Newly acquired Respironics grew 12 percent on a comparable basis; its comparable growth is not included in the 9 percent overall growth in Healthcare sales.

- Growth at Imaging Systems was supported by almost all modalities, with Computed Tomography booking 30 iCT 256-slice systems in the quarter.

- Healthcare's EBITA (earnings before deducting interest, tax and amortization expenses) was a solid 14.2 percent. Excluding the 3.5 percent reduction from restructuring and acquisition-related charges, EBITA was 17.7 percent, with a continued strong contribution from Philips Respironics.

- Equipment order intake declined 2 percent on a currency-comparable basis, attributable mainly to lower intake at Imaging Systems in North America, notably in Computed Tomography and Magnetic Resonance. Clinical Care Systems and Healthcare Informatics in North America both reported higher order intake in Q4 2008 as compared to Q4 2007, as did all businesses in the rest of the world.

- Philips further strengthened its position in emerging markets as it announced that it will acquire India-based Meditronics, a leading General X-Ray manufacturer. The acquisition of Meditronics is the fifth Healthcare acquisition in emerging markets in the last two years.

- Philips added to its leadership position in Home Healthcare Solutions by acquiring the respiratory drug delivery and therapy business of Medel SpA in Italy.

The company reports it is focusing on cashflow rather than earnings, due to its overall quarterly loss. The company had previously announced job losses of 6,000.

For more information on today's earnings announcement please visit the
Philips Media Hub at www.philips.com/media.