Philips sees core profit rise on higher hospital orders

  • Philips posted a 10 percent rise in second-quarter core profit.
  • The Dutch healthcare technology firm saw rising demand for its hospital equipment.
  • Growth was strongest in the diagnosis and treatment division.
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Koen van Weel | AFP | Getty Images

Dutch healthcare technology company Philips posted a 10 percent rise in second-quarter core profit on Monday, as rising demand for its hospital equipment led to more orders.

Adjusted earnings before interest, taxes and amortisation (EBITA) were 482 million euros ($565.5 million), in line with analyst expectations, while comparable sales growth of 4 percent was lower than the 4.9 percent predicted in a Reuters poll.

Revenue growth was at the bottom end of the 4-6 percent range targeted by Philips, as sales of personal healthcare products such as air purifiers declined in China.

The personal healthcare division had a "slow start" to the quarter due to declining demand in China, Chief Executive Frans van Houten said in a statement.

But sales recovered during the quarter, he said, adding that the company expected this to continue in the second half of the year.

Growth was strongest in the diagnosis and treatment division, as strong demand for ultrasound machines and medical scanners in China and the United States led to an 8 percent increase in sales.

Orders for hospital equipment in these markets rose by double-digits, leading to a 9 percent overall rise in new orders.