Feircebiotech: Following a global recall of its CPAP and sleep care machines, Philips posted a decline in sales for that segment’s wider connected care portfolio.
The faulty devices offset the mid-single-digit financial gains seen from the medtech’s hospital patient monitoring efforts.
Altogether, the connected care division delivered a 16% decline in sales for this year’s second quarter compared to the same three months of 2020, which saw the early stages of COVID-19’s international spread as well as 167% growth as demand skyrocketed for digital and remote monitoring hardware amid lockdowns and distancing protocols.
Across the company as a whole, Philips’ sales totaled €4.2 billion for the second quarter of 2021, or about $4.96 billion U.S., for net income amounting to €153 million.
“I am pleased with the good performance momentum in all our businesses except the Sleep & Respiratory Care business, as we delivered a strong 9% comparable sales growth and 280 basis points profitability improvement for the group in the quarter,” CEO Frans van Houten said in a statement.
That includes a 16% gain in sales for the company’s diagnostics and treatment divisions—about half of Philips’ business—for €2.1 billion in sales as well as an encouraging 29% rise in new orders for image-guided therapy, ultrasound and diagnostic imaging hardware over the coming months.
