Pre-Bid now on over 2000 items...our LIVE Auction is happening November 2nd

Current Location:
> This Story

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

Never Miss a Story

Sign Up For Weekly Top Stories


More Industry Headlines

Data Management: In the ICD-10 trenches, coding as an art and science Understanding the importance of a coding professional's work

J&J, Texas Medical Center partner to accelerate design of breakthrough medical devices The Center for Device Innovation will open in 2017

Study reviews alternatives to anesthesia for pediatric MR exams Different solutions suggested for different age groups

Survey finds slight uptick in radiation therapist positions available in the U.S. The vacancy rate of medical dosimetrists remains stable

World Medical Association taps controversial doc as chief Physician facing corruption and criminal conspiracy charges claims innocence

This Month in Medical History – Margaret Sanger and the first birth control clinic Breaking the law and changing attitudes

More children visiting ED for headaches — but fewer getting CT scans Medication is being prescribed more frequently

One third of breast cancer patients aren't receiving follow-up imaging exams Can more guidelines resolve the problem?

IBA showcases Cyclone KIUBE cyclotron at EANM Can generate up to 300 doses of FDG in 2 hours

The medical chiller owner’s survival guide ...Or, how not to lose your cool

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

Servicing GE Nuclear Medicine equipment with OEM trained engineers

We offer full service contracts, PM contracts, rapid response, time and material, camera relocation. Nuclear medicine equipment service provider since 1975. Click or call now for more information 800 96 NUMED

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 HCB 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 ©2001-2016 DOTmed.com, Inc.