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Philips Healthcare CEO To Pursue 'Other Opportunities'

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Philips N.V. (NYSE: PHG) Tuesday morning announced that its Philips Healthcare CEO, Deborah DiSanzo, will be stepping down.

This news comes amid expectations that the company's Healthcare business will post second-quarter EBITA below current market predictions. As part of the company's plan to improve its management structure, the Healthcare business will now report directly to Frans van Houten, Philips' Chief Executive Officer.

Frans van Houten commented, "The performance in our Healthcare sector is disappointing, with second-quarter EBITA expected to be approximately EUR 220 million, while expected Group EBITA of approximately EUR 400 million in the second quarter is in line with current market expectations."

He added, "Our Healthcare business represents more than 40% of the revenue of Philips and is at the heart of Philips' mission to deliver meaningful innovation to improve people's lives."

Van Houten did note, however, that he expects the EBITA of Philips' Healthcare business to improve in the second half of 2014 compared to the same period in 2013. This improvement is said to be driven in part by resumed production in Cleveland through the course of the third quarter.

The Street has reacted favorably to the announcement as shares of the company have received a bump of over three percent in the pre-market session.

Posted-In: Deborah DiSanzo Frans van HoutenNews Management

 

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