Philips Healthcare Q2 sales grow steadily, fueled by emerging markets

Philips Healthcare's sales soared 7% during the 2012 second-quarter, thanks to a focus on emerging markets. The advance led all other divisions with parent Royal Philips Electronics, a consumer products conglomerate.

The Dutch company's healthcare arm, which produces devices and medical imaging equipment, said it generated more than €2.4 billion ($2.9 billion) in sales during the second quarter, up substantially from the €2 billion ($2.4 billion) in sales during the same period in 2011.

Targeting emerging markets helped fuel steady growth growth, the company said. Among actions taken during the quarter that helped sales: The opening of new imaging system manufacturing facilities in India and China. Additionally, the company said, it is working with "three leading institutes for medical imaging technology research" in Russia. Philips also said it has had some success expanding sales by offering medical imaging consulting services in Turkey and Brazil.

In the U.S., Philips noted, it successfully pushed during the quarter to gain FCC approval to allocate spectrum bandwidth for medical body area network devices that enable remote home monitoring of patients' vital signs.

New imaging equipment orders jumped 13% in "growth geographies," Philips noted, compared to a 3% dip in orders in North American markets and a 6% decline in Western Europe. Japan's equipment orders also grow substantially, the company said, climbing by double digits.

Separately, Philips Healthcare expects to take restructuring and acquisition-related charges during the 2012 third-quarter worth about €15 million, or $18.1 million.

- read the release
- access the quarterly report (PDF)

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