Philips reports increase in Q4 sales

Dutch health tech and electronic titan Philips announced on Tuesday its sales in the fourth quarter of 2017 rose 5 percent to 5.3 billion euros ($6.55 billion), driven by an increase in orders for high-end hospital device. This figure was in line with analysts’ expectation (as surveyed for Reuters).

The firm’s net profit for the period also jumped to 899 million euros ($1.1 billion) from 640 million euros in the same period in 2016. The intake of orders saw a 7 percent increase.

Chief Executive Frans van Houten is optimistic the company will achieve the mid-year target based on the quarterly result.

"We finished 2017 on a firm note," Chief Executive Frans van Houten’s statement read as published on CNBC.

Orders for health equipment came mostly from China and North America since hospitals there needed lots of imaging tools and medical scanners for surgery.

However, the positive quarterly result was not followed by the performance in the market. The shares plunged 2.5 percent to 33.04 euros at 9.49 am in Amsterdam, as Bloomberg reported.

Partnerships with hospitals to boost revenue

Philips has been known as the maker of a light bulb. The company has decided to focus on health care equipment and stopped manufacturing electronic stuff such as bulbs, CDs, and TVs. Philips sold 12 percent stake in the electric segment Philips Lighting NV in November to raise 547 million euros.

Philips is planning to partner with several hospitals, aimed at boosting its revenue. The firm will have to compete with the likes of Siemens AG and General Electric to offer equipment such as diagnostic devices and X-ray.

Last year, the Eindhoven-based company postponed its production of some heart defibrillators in the U.S. for about a year after it reached an agreement with the Department of Justice over quality inspections. .

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