Philips hires and studies acquisitions
Valor Econômico 03/19/2009
The world economic crisis affected the global sales of Philips and made the company announce a 5% cut in its personnel all over the world. But Brazil and Latin America are in the opposite direction of this trend. The stimulation packages that are being announced by the Brazilian government to strengthen the economy include investments in infrastructure. "And the investments in health are part of the package", says the Philips CEO, who is visiting Brazil for the first time. The Brazilian government is responsible for 70% of the sales of medical equipment made by Philips and the expectations are that no cuts take place in the state funds for the sector. Latin America represented only 5% of the sales under the command of Rusckowski in 2008, whereas the United States stayed with 50%. But, in Brazil, the expansion rates are stronger and Philips has a participation in above its average market share in other countries. Five years ago, the presence of the company in the medical area was insignificant, but in 2008, according to Rusckowski, Philips got 23% of the global market and expects to get to at least one fourth in 2012. In Brazil, it already has 32% of the sales of the sector - a share that was of 20% five years ago. Besides seeking new acquisitions in the Brazilian market, Rusckowski intends to bring new lines of products to the country. One of the segments that the executive sees potential growth in sales is the segment of homecare. Philips purchased a large producer of medical equipments of domestic use in the USA last year, Respironics, for which it paid nearly US$ 4 billion. "We plan on bringing these products to the country", affirmed the executive. The task the American Rusckowski, who in 2007 took the office as international president of the health care division of Philips, has ahead of him is for all. It is up to him to turn the Dutch multinational, better known for its televisions or shavers, into a brand of medical equipment as strong as General Electric and Siemens, the two largest world producers of the sector. It is probable that, some years from now, Philips will be better known by consumers for its magnetic resonance, tomography and defibrillator devices. Brazil has a strategic role for the area of medical equipment of Philips, which purchased in the last two years two local companies, VMI, an x-ray machine manufacturer, and Dixtal Biomédica, producer of equipment to monitor patients, as well as anesthesia and ventilation equipment. Last year, the company built its first plant in Brazil for magnetic resonance and computed tomography equipment.