Toshiba Corp.'s medical equipment unit announced Tuesday it is on the lookout for merger and acquisition opportunities in an effort to build its business, Reuters reports.
"We have not really been active in things like acquisitions. But as we go forward, we would like to explore such opportunities aggressively," Masamichi Katsurada, president, Toshiba Medical Systems Corp., during a press conference.
The company’s medical unit is looking to make gains in its operating profits by up to 10 percent for the years 2008-09 from 9 percent for 2005-06. In doing this, the unit should be able to increase sales 17 percent to $3.5 billion (USD) over that time span, Katsurada said, according to Reuters.
This growth is essential to Toshiba’s larger business picture which is hoping to increase its operating margin by as much as 5 percent and see sales of $67.5 billion by 2008. In 2005, the company saw an operating margin of 3.8 percent and sales of $54.5 billion. The medical unit represents 5 percent of sales and 13 percent of its operating profit for the parent company, Reuters reports.
Toshiba Medical sits behind GE Healthcare, Siemens Medical Solutions, and Philips Medical Systems in the ranks of top diagnostic imaging providers.
In an effort to catch its rivals, the unit is placing its attention on diagnostic imaging systems in CT, x-ray systems in hopes of growth in the U.S. market, Reuters reports.
"As for products, we will press ahead with our existing line of equipment with emphasis on CT. Geographically, we aim to achieve growth mainly in the United States," Katsurada said.