Cost-cutting and integration savings helped propel Philips Medical Systems to third-quarter income from operations of 138 million euros ($160.5 million U.S.), up from a loss of 11 million euros ($12.8 million U.S.) in the third quarter of 2002. The Andover, MA-based firm had sales of 1.41 billion euros ($1.64 billion U.S.), down 8% on a nominal basis but up 9% on a comparable basis from the 1.54 billion euros ($1.79 billion U.S.) reported in the third quarter of 2002.
Profit growth was due to higher comparable sales, better margins, and lower costs, Philips said. Looking ahead, Philips is taking a cautious outlook in the medical sector due to macroeconomic weakness and lower public spending, particularly in some European countries.
The vendor also noted increasing competition and more price pressure in the medical industry. Philips said it’s maintaining a strong continued focus on innovation, productivity, and cost control. The firm’s integration program, which targeted savings of 350 million euros ($407.2 million U.S.) by the end of 2003, is on track, Philips said.
By AuntMinnie.com staff writers
October 15, 2003
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