Reuters logo
Philips healthcare business earnings to miss forecasts
July 8, 2014 / 6:46 AM / 3 years ago

Philips healthcare business earnings to miss forecasts

AMSTERDAM, July 8 (Reuters) - Dutch healthcare and lighting company Philips warned second-quarter earnings at its healthcare business would miss expectations and said the boss of the division - which contributes more than 40 percent of its revenues - would leave.

“The performance in our Healthcare sector is disappointing, with second-quarter EBITA expected to be approximately EUR 220 million, while expected Group EBITA of approximately EUR 400 million in the second quarter is in line with current market expectations,” said chief executive Frans van Houten.

The company said Van Houten would assume direct charge of the division, while Deborah DiSanzo, the division’s current head, will leave the company.

In January, Philips halted production at a facility in Cleveland which makes CT scanners and nuclear medicine equipment following an inspection by the U.S. Food and Drug Administration. Van Houten said EBITA would improve as Cleveland came back on line.

“We anticipate, however, EBITA performance in Healthcare to improve in the second half compared to the same period in 2013 as, among others, Cleveland gradually resumes production in the course of the third quarter,” he said.

Philips’ healthcare division has played a central part in the company’s reinvention from a consumer electronics company into a high-end medical solutions and lighting company.

The company publishes its second-quarter results on July 21.

Reporting By Thomas Escritt; Editing by Sophie Walker

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below