Dutch industrial conglomerate Royal Philips Electronics this week announced a corporate restructuring that includes the merging of its consumer and professional healthcare divisions into a single unit.
Under the company's Vision 2010 program, Philips plans to simplify its corporate structure into three main divisions. In healthcare, the company's Consumer Healthcare Solutions unit will be renamed Home Healthcare Solutions, and will be merged with Philips Medical Systems of Andover, MA, into a new Philips Healthcare division.
Leading the new Philips Healthcare unit will be Philips Medical Systems CEO Steve Rusckowski. The two other Philips divisions will consist of Philips Lighting and Philips Consumer Lifestyle, which will include the company's Consumer Electronics and Domestic Appliances and Personal Care units. The changes will be effective January 1, 2008.
In addition to the restructuring, Philips said that a goal of the Vision 2010 program is to boost the EBITA (earnings before interest, taxes, and amortization) margin of its current businesses to exceed 10%. The company hopes to achieve savings of 150 million to 200 million euros ($208 million to $277.4 million) through the reorganization.
In other Philips news, the company said it sold its 2.5% stake in speech recognition firm Nuance Communications of Burlington, MA. Philips said it will receive proceeds from the sale of about 60 million euros ($83.2 million).
By AuntMinnie.com staff writers
September 14, 2007
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