Visit DOTmed at RSNA, North Hall B, Booth #6608 -- Ask about Clean Sweep Equipment Auctions

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

New scattered X-ray method delivers a whole new view of your tooth Measuring structures as small as a billionth of a meter

Breast MR after mammography may catch additional aggressive cancers How clinically significant are multicentric cancers?

Bilingual patients have better cognitive function after stroke But it may not apply to all bilingual people

Will the future hold compact, tunable X-ray devices made of graphene? May reduce radiation dose and cost associated with current X-ray devices

Dell announces entry into health care monitor market New device is designed to meet IEC 60601-1 standard

Canadian hospital clerk who sold maternity records fined $27,000 — hospital facing $308.4 million suit From 1995 to 2014 she sold at least 14,450 records

Google Glass used to treat blocked coronary artery for first time A more economical option

UnitedHealth scaling back efforts in ACA exchanges May quit them entirely in 2017

Discover Cinematic Rendering technology A talk with Dr. Dorin Comaniciu, vice president of Siemens’ Medical Imaging Technologies

Bundled payments to overhaul lucrative total joint replacement surgery sector The new rule will be initially rolled out in 67 metropolitan areas in April of 2016

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

CT, MRI, NM, SPECT/CT, PET & PET/CT service, refurbished systems and parts

Accelerate your ROI with our Black Diamond Certified refurbished systems. One year warranty - ISO 13485 Certified - FDA registered - Over 65k parts in inventory 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


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

Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Gold Service Dealer Program
Receive RFP/PS
Healthcare Providers
See all
HCP Tools
A Job
Parts Hunter +EasyPay
Get Parts
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Virtual Trade Show
Find Service
For Equipment
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 ©2001-2015 DOTmed.com, Inc.