Business highlights

• Philips launched its premium EPIQ ultrasound system in Europe, parts of Asia and the US. EPIQ features high image quality paired with 'Anatomical Intelligence', a decision support technology designed to improve patient outcomes and enhance clinical workflows across the continuum of care.
• Expanding its Hospital to Home activities in Asia Pacific, Philips has established the regional headquarters for this business in Singapore. Philips also collaborated with Guardian Health & Beauty, Singapore's largest health and beauty chain, to screen citizens across the country for obstructive sleep apnea (OSA), to identify and treat this disorder.
• Building on its leadership in image-guided interventions and therapy, Philips has installed an advanced hybrid operating room (OR), the first of its kind in Russia, at a leading medical institute in Moscow. The hybrid OR enables clinicians to optimally perform a wide range of clinical procedures and improve patient care.
• In line with its vision to use partnerships to help create the future of health care, Philips strengthened its collaboration with Hansen Medical for robotic systems in minimally invasive interventions, while Froedtert & The Medical College of Wisconsin Clinical Cancer Center joined the Elekta and Philips research consortium on MRI-guided radiation therapy.
• Reflecting the company's focus on long-term partnerships to support innovative and affordable care, Philips and Medical Center Leeuwarden in the Netherlands have signed a 10-year managed services agreement for ultrasound.

Financial performance

• Currency-comparable equipment orders declined 2% year-on-year. Patient Care & Clinical Informatics recorded a 7% decline, while Imaging Systems showed low-single-digit growth. Equipment order intake in growth geographies showed a low-single-digit decline, mainly due to Russia & Central Asia, while China and India recorded double-digit growth. North America equipment order intake showed a low-single-digit decline. Western Europe recorded a 7% decline as Q3 2012 included large and multi-year deals in the Netherlands and UK.
• Healthcare comparable sales remained flat year-on-year. Customer Services achieved mid-single-digit growth, while Home Healthcare Solutions and Patient Care & Clinical Informatics showed low-single-digit growth. Imaging Systems recorded a mid-single-digit decline.
• From a regional perspective, comparable sales in growth geographies increased by 3% year-on-year, with strong growth in China, Central & Eastern Europe and Latin America, partly offset by declines in Russia, Central Asia, Middle East and Turkey. Western Europe remained in line with Q3 2012, while North America declined by 2% and other mature geographies recorded low-single-digit growth.
• EBITA was EUR 329 million, or 14.6% of sales, compared to EUR 305 million, or 12.5% of sales, in Q3 2012.
• Excluding restructuring and acquisition-related charges, EBITA amounted to EUR 330 million, or 14.6% of sales, compared to EUR 308 million, or 12.6% of sales, in Q3 2012. The 2.0 percentage points increase was due to improved gross margins and overhead cost reductions.
• Net operating capital, excluding a negative currency translation effect of EUR 547 million, decreased by EUR 189 million to EUR 7.5 billion. This decrease was largely driven by lower fixed assets. Inventories as a percentage of sales improved by 1.2 percentage points year-on-year, driven by reductions in all businesses.
• Compared to Q3 2012, the number of employees decreased by 659, mainly as a result of reductions in North America and Europe.

Related news articles:

• Philips Healthcare's Profile

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a diversified health and well-being company, focused on improving people's lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2012 sales of EUR 24.8 billion and employs approximately 114,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare.