Driven by double-digit sales gains in its healthcare informatics and solutions and services businesses, Philips Healthcare reported 3% growth in currency-adjusted revenues and an increase in profitability in its fourth quarter.
For the period (end-December 31), the vendor had sales of 3.27 billion euros ($3.55 billion U.S.), up 15% on a nominal basis and up 3% when adjusted for currency fluctuations from the 2.85 billion euros ($3.09 billion) recorded in the fourth quarter of 2014.
Earnings in the healthcare business before interest, taxes, and amortization (EBITA) reached 431 million euros ($467.4 million), compared with EBITA of 390 million euros ($422.9 million) in the same period last year.
The 2015 fourth-quarter EBITA figures included 95 million euros ($103 million) in charges related to devaluation of the Argentine peso as well as restructuring and acquisition-related charges, while the fourth quarter of 2014 included 63 million euros ($68.3 million) in various charges.
In addition to double-digit sales growth in healthcare informatics and solutions and services, Philips reported mid-single-digit growth in its imaging systems business for the fourth quarter. By geography, North America produced low-single-digit growth while other mature geographies yielded mid-single-digit growth. Western Europe, however, had a low-single-digit decline, Philips said.
Philips also pointed to a 15% increase in currency-comparable orders, including double-digit growth in imaging systems, healthcare informatics, and solutions and services. Strong order growth was experienced in North America and Western Europe, as well as low-single-digit growth in other mature geographies, according to the vendor. Growth geographies also turned in double-digit growth, led by double-digit growth in China, Philips said.
For the year, Philips Healthcare had sales of 10.912 billion euros ($11.83 billion) up 3.8% on a currency-comparable basis from the 9.19 billion euros ($9.96 billion) reported in 2014. The company had 2015 EBITA of 1.02 billion euros ($1.11 billion), compared with 616 million euros ($668.1 million) in 2014.
