The Dutch maker of healthcare scanners and lighting is tracking 1 percentage point behind the trajectory needed to achieve 2016 targets for sales growth, earnings and return on investment metrics, Chief Executive Officer Frans van Houten said today. Philips dropped as much as 5.1 percent in Amsterdam trading today.
This year is crucial for the CEO as he needs to show he’s
right to separate the lighting division to focus on health-care equipment and that Philips can land contracts with hospitals that last 15 years or more. The company expects booming demand for data offerings that help hospitals monitor and analyze patients’ health, reduce unnecessary visits and increase the efficiency of operations and medical procedures.
“What mostly struck me is the one percentage point they’re behind on their targets,” Jos Versteeg, an analyst at Theodoor Gilissen Bankiers in Amsterdam, said by phone.
The CEO said he’s not ready to abandon targets yet, and will update investors on performance metrics later in the year. For Theodoor Gilissen’s Versteeg, it seems there’s a lot to achieve before 2016.
An employee holds a Philips VISIQ portable ultrasound system, produced by Royal Philips... Read More
FX Volatility
Exchange rate volatility is set to continue, said Chief Financial Officer Ron Wirahadiraksa, and Philips remains “cautious” about the economic outlook and some end markets. There will be further expenses to book in 2015 and 2016, mainly in relation to restructuring and the separation, according to the company.Philips had been seeking comparable sales growth of 4 percent to 6 percent, an earnings margin within the consumer health care business of 14 to 15.5 percent, and an return on invested capital of more than 14 percent.
As well as separating the lighting division, Philips wants to sell its lighting components branch by June and exit its lighting-solutions operation. No bids have yet been received for the solutions business, Van Houten told Bloomberg TV, adding that he’ll give a progress report on that disposal later this year.
Van Houten pledged to complete the transformation of the Dutch company that he started, and will seek a second term as CEO to do so. His first three years in charge have been beset by market volatility as well as internal turbulence, including production problems at a health-care equipment plant in Cleveland. Restoring the plant to peak performance will take time, he said today.
An employee performs tests on halogen lights at the Royal Philips NV automotive... Read More
Shares of Philips fell 5 percent to 25.45 euros as of 9:06 a.m. in Amsterdam, valuing the company at 23.8 billion euros.
No comments:
Post a Comment