AMSTERDAM (AFX) - Royal Philips Electronics NV said its Medical Systems
division is still looking to expand, either through acquisitions or alliances.
"As we explore new areas for further expansion, either through acquisition
or alliances, we will be looking for market, technology and clinical synergies
with our existing activities to build an even stronger healthcare business,"
Philips Medica Systems president and CEO Jouko Karvinen said, in remarks given
before today's investors and analysts meeting with Philips Medical Systems
division.
Philips CEO Gerard Kleisterlee, who will be closing today's meeting, said he
sees "lighter demand" in consumer markets in the second quarter, which could
work against short term goals.
"Economic indicators around the world point to reduced growth rates. Europe
in particular is suffering from a weakened consumer retail environment in the
second quarter, hampering our growth ambitions in the short term," Kleisterlee
said.
The CEO added that Philips will still invest around 75 mln eur in the second
quarter, despite those economic factors.
Philips last year launched a global marketing campaign aimed at completing
the transformation of the company into a healthcare and lifestyle brand.
In addition, the CEO sees "a deteriorating business performance" in the
Other Activities segment and said that he will continue to sell non-core
operations in order to achieve medium-term goals.
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