Technology giant Philips has reported “solid sales” in the second quarter, supported by a 7% jump in its healthcare division.
The company announced healthcare sales of €2.4 billion (£1.8 billion) for the three months ended 30 June 2012, up from €2.1 billion in the same period the previous year.
In healthcare equipment, the group said a 22% growth in emerging markets outweighed declining sales in Europe and North America, which have been hurt by government austerity measures.
Overall, the group reported higher than expected second quarter net profits of €167 million, compared with a heavy net loss of €1.3 billion in the same period last year. This beat analysts’ expectations of €118 million.
Group chief executive Frans van Houten (pictured
) said the results were “encouraging”. Since Houten took the role as chief executive in April 2011, he has had to issue two profit warnings as weak consumer demand and austerity measures, especially in southern Europe, hurt sales in the healthcare unit.
In recent years, Philips has shifted its focus from consumer-targeted audio-visual products, to healthcare and lighting. Its healthcare division includes a range of medical technologies such as diagnostics equipment and telehealth products.
Last month, Philips announced it had started producing imaging systems in its own plant in India, targeting local markets with cheaper healthcare equipment.