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Philips Sees Q2 Healthcare EBITA Below View; Healthcare CEO DiSanzo Leaves(dpa-AFX International Compact Via Acquire Media NewsEdge) AMSTERDAM (dpa-AFX) - Dutch consumer electronics giant Koninklijke Philips Electronics NV (PHGFF.PK, PHG) Tuesday said it expects Group EBITA for the second quarter to be in line with current market expectations, while it sees Healthcare EBITA below view. The firm also announced the resignation of Healthcare CEO Deborah DiSanzo as she intends to pursue other opportunities. The company's Healthcare business represents more than 40 percent of the revenue of Philips. Frans van Houten, CEO of Philips said, "The performance in our Healthcare sector is disappointing....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." For the current second quarter, the company expects Healthcare sector EBITA to be about 220 million euros, and Group EBITA to be around 400 million euros. For the second quarter of 2013, the company had posted Group EBITA of 603 million euros. EBITA excluding restructuring and acquisition-related charges and other gains totaled 530 million euros. Healthcare sector EBITA was 420 million euros for the prior-year quarter. Healthcare EBITA increased by 112 million euros year-over-year, while excluding restructuring and acquisition-related charges and other gains, it improved by 22 million euros. As a result of implementation of the new management structure in its Healthcare sector, Philips said its Healthcare business groups will report directly to Houten, thereby removing one management layer. "The global health care industry is undergoing a paradigm shift, providing significant opportunities for Philips to deliver more integrated solutions across the continuum of care, from prevention, diagnosis and treatment, to monitoring and after care," Houten said. In June, the company had announced a strategic alliance with salesforce.com (CRM) to deliver cloud-based healthcare information technology, with Patient relationship management being at the center of the envisioned platform. For the first quarter, the company had reported a decline in profit, hurt by higher charges as well as negative currency impacts. Improved earnings at consumer Lifestyle and lighting segments were offset by lower results at healthcare and Innovation, Group & Services. In Amsterdam, Philips shares are currently trading at 23.42 euros, up 0.32 euros or 1.36 percent. Copyright RTT News/dpa-AFX |