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UPDATE 1-Philips aims to outperform healthcare market

Fri May 16, 2008 3:12am EDT

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AMSTERDAM, May 16 (Reuters) - Philips Electronics (PHG.AS), one of the world's top three hospital equipment makers, wants to outperform the broader healthcare market with sales growth of 6 to 8 percent from 2009 to 2010, it said on Friday.

"Philips Healthcare has taken significant steps to build a solid foundation for accelerating profitable growth in the years to come," Steve Rusckowski, head of Philips Healthcare, said in a statement at the start of an analyst day.

The company also confirmed the unit's margin target for earnings before interest, tax, depreciation and amortisation of 15 to 17 percent of sales by 2010.

By 0710 GMT Philips shares traded 1.2 percent higher at 24.97 euros.

Philips said this week it had bought Brazilian healthcare equipment maker Dixtal Biomedica e Tecnologia for an undisclosed sum as part of its strategy to expand in high-growth healthcare markets in emerging economies, following on the heels of a small acquisition in China.

The company has beefed up its medical business with a number of acquisitions, such as the $5 billion purchase of sleep therapy products maker Respironics that closed in March.

Philips and U.S. rival General Electric (GE.N) have been hit by a weak U.S. market for imaging equipment such as computed tomography scanners due to a change in the reimbursement of healthcare costs.

Philips has said it should become clear by the second half of the year if the market is recovering. Its imaging systems orders already grew in a double-digit percentage range in North America in the first quarter. (Reporting by Niclas Mika, editing by Will Waterman)



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