Philips announced Q2 2009 earnings today. Sales for the overall company declined 19% year-on-year, reflecting continuing weakness in consumer and professional markets. Philips Healthcare sales declined year-on-year; however, the sector experienced an increase compared with Q1, supported by modest growth outside the U.S.

According to Gerard Kleisterlee, president and CEO of Royal Philips Electronics, "In line with earlier guidance, we did not see a material improvement in consumer or professional markets in the past three months. However, while the pressure on our top line persisted, we are reporting a positive net income and improved underlying profitability over the quarter."

Specific quarterly results and highlights from Healthcare include:


-Comparable sales declined 5% year-on-year, with softness in mature markets, particularly North America, being partly offset by growth in emerging markets. Growth at Customer Services was more than offset by lower sales at Clinical Care Systems, Healthcare Informatics (mainly Patient Monitoring) and Imaging Systems. Sales at Home Healthcare Solutions showed a minor decline.
-Healthcare EBITA amounted to EUR 158 million, or 8.4% of sales, EUR 30 million lower than in Q2 2008. The decline was mainly attributable to Imaging Systems and Clinical Care Systems. Profitability at both Customer Services and Home Healthcare Solutions remained strong.
-Philips acquired Traxtal, a medical technology innovator in image-guided procedures, to strengthen its position as a leading provider of minimally-invasive therapy solutions.
-Philips secured a multi-million Euro deal with Kyushu University Hospital, Japan's leading radiology and molecular imaging center.

Additional information about Philips Q2 earnings, including Healthcare business highlights and financial performance can be found at: http://www.newscenter.philips.com/about/news/press/20090713_q2.page.

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