Philips Q3 core profit hurt by healthcare, shares fall

[billbolton]

Philips Q3 core profit hurt by healthcare, shares fall
10.13.08, 6:35 AM ET

Netherlands - * Philips healthcare unit stumbles in Q3

* Group core earnings miss expectations

* Shares down more than 7 percent

By Harro ten Wolde

AMSTERDAM, Oct 13 (Reuters) - Dutch conglomerate Philips posted sharply lower third-quarter core profit that missed forecasts, partly hurt by its normally resilient healthcare unit as orders in the United States slowed due to the credit crisis.

Shares of Philips, whose health care unit is one of the world's top three hospital equipment makers, fell more than 7 percent at one point, underperforming a sharply higher market.

"In the United States there is a higher dependence on capital markets for hospitals for their financing," Chief Financial Officer Pierre-Jean Sivignon said. "With the financial crisis continuing we have no idea how long this situation will persist."

See the full story here. The relevance to CPAP is that Philips now wholly owns Respironics.

Cheers,

Bill

[echo]

There was a piece on the Dutch radio yesterday that Philips will announce layoffs across all divisions. Not clear if it was limited to Dutch Philips or Global Philips.
I wonder how that will affect Respironics Sorry Bill, I hope this doesn't affect you!!

[DreamStalker]

Seems to be a lot of that going around lately, shares going down.

[smurf]

Go Resmed!!!!

[Snoredog]

Go Resmed!!!!

Yeah they were only down by 32% year to date

http://finance.google.com/finance?client=news&q=RESMED

[Goofproof]

That will teach them to buy a company, that thinks is supply chain is more important, than their customers, OH, I forgot they don't have customers, only sales outlets. Jim

[Wulfman]

Go Resmed!!!!

Yeah they were only down by 32% year to date

http://finance.google.com/finance?client=news&q=RESMED

Here's a 2-year and 2-month chart for ResMed. Historically (IIRC), the middle of August was when they made their announcement for their new pricing policy which was to take effect on the first of October of '06.
They took a big hit right after that....and then have been up and down ever since. Right now.....REALLY DOWN.

http://moneycentral.msn.com/investor/ch ... kie=1&SZ=0


Den

[billbolton]

Right now.....REALLY DOWN.

That's share price, not profitability.

Here's a 2-year and 2-month chart for ResMed.2.

2 years an 2 months?!? The 5 year chart gives quite a different view.

Cheers,

Bill

[dsm]

Pushing emotive issues aside - here are (what I consider) realities ...

1 - Resmed's worst shareprice hit relative to the market was after the recall of the S8s was announced

2 - Resmed is a growth stock long term

3 - Resmed is a takeover target just like Respironics was



D

[ractar28]

Okay, the P/E ratio of Resmed it 25.xx. That's high IMHO.

Anyway, Respironics can bite me anyway (see my thread about their customer service).

Resmed was a lot more helpful, getting me to a sleep clinician who helped me by listening to my mask issues and helping me understand where the issues were.

HOWEVER, Respironics sucks because they have a MAP policy, but ResMed is WORSE because they have a minimum SELLING PRICE policy. Someday I will learn the difference between "price fixing" and requiring a minimum selling price.

[Wulfman]

Okay, the P/E ratio of Resmed it 25.xx. That's high IMHO.

Anyway, Respironics can bite me anyway (see my thread about their customer service).

Resmed was a lot more helpful, getting me to a sleep clinician who helped me by listening to my mask issues and helping me understand where the issues were.

HOWEVER, Respironics sucks because they have a MAP policy, but ResMed is WORSE because they have a minimum SELLING PRICE policy. Someday I will learn the difference between "price fixing" and requiring a minimum selling price.

And, even before that, (2005 I believe) they (ResMed) instituted a policy whereby NONE of their products could be sold/shipped out of the respective countries. I'm not sure if it applied to the brick and mortar businesses (I think it did), but it sure did to the online sellers.

Den

[Goofproof]

Resmed was first to set higher pricing on their products for the internet. Jim
Remstar, fell in line later, because they had extra bullets too.

[WNJ]

Imagine!

Philips’ profits were lower than forecast, partly because of lower than expected sales in the US market due to the credit crisis. I wonder how many other huge multinational corporations had a similar third quarter, for the same reason. I bet GM would like to be making a profit, any profit, instead of reporting losses.

Philips shares fell as much as 7% at one point. With the current volatile market, this is news?

Respironics is an almost infinitesimal part of Philips gigantic healthcare holdings. Look at the web site for Philips Medical products

Wayne

[billbolton]

Philips shares fell as much as 7% at one point. With the current volatile market, this is news?

Well, if you choose to completely ignore the "underperforming a sharply higher market" bit......

[WNJ]

I guess it’s especially newsworthy if you’re a paid shill for Resmed and can’t pass on any opportunity to trash talk Respironics.

From the standpoint of an investor, this is worth the mention it got in the brief Forbes article.

From the standpoint of an end-user of the product, it is pretty much irrelevant. It says nothing about the quality of the Respironics products.

I have an older GMC pickup truck. A fine vehicle. With GM’s current problems, I’ve been thinking that this would be the ideal time to buy a new GMC truck. I wonder if Respironics will be having a big markdown on their products soon.

Wayne