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The chief of Philips Healthcare ($PHG), Deborah DiSanzo, has left the company ahead of what is expected to be disappointing Q2 earnings. The unit will now report directly to CEO Frans van Houten, The Wall Street Journal reported.
A spokesman for the Dutch electronics giant told the newspaper that a new management structure was being put in place because the unit's operations weren't adapting fast enough to meet changing market demands.
The company added that earnings before interest, taxes and amortization, or EBITA, for the healthcare operation would not meet second-quarter expectations, however the division should see an uptick in the second half of the year compared to year-ago results.
Second-quarter results for the division were pegged at €400 million ($543.7 million), which is in line with expectations but lags the €603 million ($819.7 million) for the same period last year. Philips is scheduled to announced its quarterly earnings July 21.
Philips Healthcare generated €9.58 billion ($13.4 billion) in revenue last year, which accounted for about 41% of the overall sales for the company. It competes in the medical imaging business with General Electric ($GE) and Siemens ($SI).
Of late, Philips has been focused on cost cutting and streamlining its business lines. Last week, the company announced it would spin off its lighting components business. In June, its healthcare unit announced it would partner with Salesforce.com to build a cloud-based platform to advance clinical information sharing and patient engagement.
- read the WSJ story (sub. req.)
- see Bloomberg's take
- view Reuters' earnings warning story