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Philips Healthcare Chief Leaves After ‘Disappointing’ Profit

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July 8 (Bloomberg) -- Royal Philips NV said health-care chief Deborah DiSanzo has quit after two years overseeing the Dutch company’s medicine dispenser and scanner division amid “disappointing” results in the second quarter.

No replacement for DiSanzo, 54, will be appointed as managers will now report directly to Chief Executive Officer Frans van Houten, the Amsterdam-based company said. While health-care earnings before interest, taxes and amortization were lower than analysts’ estimated, quarterly profit at the group level met predictions, it said.

Philips is focusing more on services within healthcare to counter tightening budgets among European hospitals and consolidation in the U.S. medical market. Van Houten earlier this year said he sees growth opportunities for maintaining hospital equipment and cloud-based services for patients and medical staff. It signed a partnership with cloud-based services platform Salesforce.com.

“What you see is that the miss in healthcare is compensated by other divisions, so overall it’s in line with what the market expects,” said Robin van den Broek, an analyst at ING in Amsterdam. “What’s more important is that Philips said the results in the second half will be better than last year, as there was some market uncertainty about that.”

Shares of Philips rose 0.5 percent at 23.23 euros in Amsterdam at 9:04 a.m., valuing the company at 22.2 billion euros ($30.2 billion).

Ebita was about 220 million euros in the second quarter at the health-care division, with group Ebita of about 400 million euros, in line with estimates, Philips said.

‘Paradigm Shift’

Health-care profit will be buoyed by the restart of operations at Philips’ facilities in Cleveland, and the softening of currency effects, Van den Broek said.

“The global health-care industry is undergoing a paradigm shift, providing significant opportunities for Philips to deliver more integrated solutions across the continuum of care, from prevention, diagnosis and treatment, to monitoring and after care,” van Houten said.

To contact the reporter on this story: Elco van Groningen in Amsterdam at vangroningen@bloomberg.net

To contact the editors responsible for this story: Simon Thiel at sthiel1@bloomberg.net Andrew Noel, Kim McLaughlin

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