SEARCH
Current Location:
>
> This Story


Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

Never Miss a Story

Sign up for email alerts

 

More Industry Headlines

AFT calls for improved Ebola hospital protocols Meanwhile, 43 people in Texas are removed from Ebola watch list

Americans with insurance still not going to doctor Will making cost and quality information transparent be the solution?

Mass. health care cost transparency law underperforming Pricing still murky after transparency law introduced

FDA approves Siemens' ultrasound with true volume 3-D TEE probe The system offers real-time blood flow and valve measurements in seconds

Robotic MR-guided needle performs brain surgery through cheek No need to drill through patient's skull

MEDICA's education conference: where innovations merge The four-day conference will discuss relationships between science and medical technology

Barco launches new diagnostic display system The system may provide radiologists with some needed relief

Konica Minolta gets FDA clearance for AeroDR XE Portable radiography panel is specially designed for use under ER and ICU conditions

ESR calls for safer and more appropriate use of imaging Campaign intends to limit number of radiological exams performed

Hafner heads to Varian The former senior director of Global Sales and Marketing for Philips/Dunlee makes a move

Philips to cut 4,500 jobs, as profits plunge

by Brendon Nafziger , DOTmed News Associate Editor
Royal Philips Electronics posted sales growth in its health care segment for the third quarter Monday, even as overall profits plunged. The company also announced it had a "next-generation PACS system" lined up for launch this year.

The Dutch electronics giant, and the biggest light bulb seller in the world, said income fell a whopping 85 percent, from 524 million euros, or 55 cents per share, in third quarter 2010, to 76 million euros, or 8 cents per share, in the third quarter this year.

Story Continues Below Advertisement

We want to buy your Siemens Symphony or Avanto MRI -- today!

Top Dollar Paid, Fixed or Mobile. Call our Siemens Specialist for a Quote today -- 212-558-6600 Ext. 250 DOTmed Certified



The company also said it was moving forward on a massive restructuring plan that would result in 800 million euros in savings, more than half of which comes at the cost of 4,500 jobs, 1,400 from offices on its home turf, the Netherlands.

CEO Frans van Houten said in a statement that the layoffs were a "regrettable but inevitable step to improve our operating model to become more agile, lean and competitive."

Still, the company said it's aiming to reach 2013 mid-term financial targets, and that certain segments, such as lighting, experienced sales growth.

Health care revenues have also inched up, especially in emerging markets. Philips Healthcare said sales grew 7 percent, from 2.07 billion euros in third quarter 2010, to 2.08 billion in the third quarter this year. However, this segment's operating profit fell from 282 million euros in the third quarter last year to 261 million euros this year.

Currency-comparable equipment orders rose 5 percent year-over-year, rising 6 percent in North America but 15 percent in so-called "growth geographies," while declining in Europe.

Sales also reflected this regional spread, with North America enjoying 8 percent sales growth, growth geographies 20 percent growth, and mature geographies 4 percent growth.

Highlighting some of its action in growth geographies, Philips said it struck a five-year deal with Bunda Group, a mother and child hospital group in Indonesia, to provide medical imaging on a pay-per-use model. It also said its India branch inked its biggest multi-modality deal this year with Fortis Healthcare, one of India's largest hospital chains, over an under-construction hospital in a New Delhi satellite city.

In a note on its financial report, Philips also said it was releasing several new products in the fourth quarter, including a "next-generation Patient Archiving and Communications System (PACS)." TrueFlight Select, an economic PET-CT system with time-of-flight technology, will also become available worldwide in the fourth quarter, Philips said.

Back to DOTmed News
  Pages: 1

Related:


Interested in Medical Industry News? Subscribe to DOTmed's weekly news email and always be informed. Click here, it takes just 30 seconds.

You Must Be Logged In To Post A Comment

Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2014 DOTmed.com, Inc.
ALL RIGHTS RESERVED