Thanks to its recent acquisition spree, Dutch multimodality vendor Philips Medical Systems should produce revenues of 8 billion euros ($7.12 billion) in 2004, according to a presentation made today in Amsterdam by Hans Barella, president and CEO of the division.
Over the past three years, Philips has acquired ATL Ultrasound, MedQuist, ADAC Laboratories, Marconi Medical Systems, and the Healthcare Solutions Group of Agilent Technologies. Those companies are in the process of being integrated into Philips, and their products will be sold under the Philips brand name, Barella said.
Barella said that by the end of 2003 he expects Philips Medical to enjoy annual cost savings of up to $311.6 million, and a profit margin of 14% in 2004 based on earnings before interest, taxes and appreciation (EBITA). The company will take a one-time acquisition charge of $311.6 million in the fourth quarter of this year, followed by additional integration costs of $89 million in 2002.
Philips is now neck-and-neck with German vendor Siemens Medical Solutions in the competition for the number two spot in medical imaging, behind GE Medical Systems of Waukesha, WI. Philips said its pro forma 2001 healthcare revenues are $6.5 billion, while Siemens pegged its fiscal 2001 revenues at 7.2 billion euros ($6.41 billion). Philips now has 22,000 employees worldwide.
By AuntMinnie.com staff writersDecember 5, 2001
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ADAC and Philips merge people and platforms, June 26, 2001
Philips plans $1.7 billion acquisition of Agilent healthcare group, November 17, 2000
Philips to re-enter nuclear medicine market with bid to buy ADAC, November 13, 2000
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