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Apr. 14. 2008 / 4:00AM, PHG - Q1 2008 Royal Philips Electronics Earnings Conference Call

Pierre-Jean Sivignon - Royal Philips Electronics - CFO

Yes, absolutely I will. As far as community hospital is concerned, which is a question comes for a reason, I've looked at that very carefully. And the answer is, it's a very small part of our portfolio in North America. So I can't comment much more, because not so much that we're not exposed, but it's a very, very, very slim part of our exposure. So I can't comment much more. It's not a market on which we are very present.

Now your next question is the price war. I think the number we've used consistently in terms of pricing pressure has been 3% to 4% per year. I said on the previous call, at probably the last quarter that that number might have gone to 4% to 5%. Does that mean price war? I don't think so. I think the important thing for us is to continue to come up with innovation to absolutely address that issue. And if I had to give one modality which I find still in difficulty, it is certainly CT, computer tomography. And there the issue in terms of both volume as well as margin will be addressed by the 256 slash -- excuse me, the 256 slices scanner which is very much targeting, in particular, cardiac care and which is meant to be in full swing production in the fourth quarter.

So pricing pressure there has been, there will be, is it much more, okay, maybe 3% to 4% going to 4% to 5%, and answer being innovation. And I would say best example computer tomography. I think this is probably the best way to answer you at this point.

Simon Smith - Citigroup - Analyst

Sorry, and just finally, it's been suggested that the North American imaging market was down 13%. Would you say that's a fair representation to put in the context of you're up over 10%?

Pierre-Jean Sivignon - Royal Philips Electronics - CFO No, I think in terms of orders we were double digit; we were solidly double digit. But again I'm not bragging about it. I think it's

quite robust, but I am obviously well aware that it compares to a Q1 mentioned.

last year which was made easier for the reason I just

In terms of revenue growth, actually the Imaging Systems was basically -- I think I'm looking at North America, if Imaging North America was I think flat. So good incoming orders in terms of revenue growth. So to your question about 13% or you mentioned 17% decline, I think that's what you said, no we didn't see that in neither in our revenue nor in our incoming orders.


Thank you. Your next question comes from Mr. Janardan Menon from Dresdner Kleinwort. Please limit yourself to one question with a maximum of one follow up. Please go ahead.

Janardan Menon - Dresdner Kleinwort - Analyst

Hi, good morning. I just want to first explore the Consumer Lifestyle business, ex-Connected Displays. When you calculate the revenue trend there ex-Connected Displays, and even if you set of the EUR30 million of licensing income, you get to a very modest comparable growth. And you made a comment that the traditional DAP business saw very strong growth. So I'm just wondering what's happening to the rest of the business, which came from Consumer Electronics, is there any weakness there? Is that profitable? How should we model that business going forward? Will that be declining etc?


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