Medical sales provide Philips with first quarter turnaround

The medical sales division of Dutch electronics giant, Philips Electronics, has helped the company stage a strong economic turnaround in the first quarter of 2012.

The company made a loss of €160 million in the fourth quarter of 2011, but has reported that it made a first-quarter net profit of €249 million in 2012, after sales climbed to some €5.608 billion.

The company’s chief executive, Frans van Houten, said that Philips’ healthcare products have significantly increased their market share, showing that the company is “beating the competition”, even in a tough economic environment. He warned, however, that cut backs in government spending on healthcare across Europe meant that they remained cautious for the rest of 2012.

“We remain cautious about the remainder of 2012 given the uncertainties in Europe, particularly in the healthcare and construction markets, and the slowing growth rate in the global economy,” he explained.

The healthcare division of Philips produces a wide range of medical equipment used in hospitals, surgeries and domestic settings throughout Europe, ranging from home oxygen kits to hospital scanners.

Mr van Houten said that further restructuring of the company would be taking place in 2012, with particular focus put on the company’s corporate culture – which many people within the company consider overly consensus-driven and cautious.

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