Philips lifts outlook after profit beat, voices concern over China
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[July 24, 2023]
By Diana Mandia
(Reuters) -Dutch health technology company Philips on Monday modestly
increased its full-year targets after beating quarterly earnings
expectations but expressed concern over China's drive to become
self-sufficient in health-related technologies.
The Amsterdam-based group, a former industrial conglomerate that now
focuses on medical technology, reported adjusted earnings before
interest, taxes and amortisation (EBITA) of 453 million euros ($503.78
million) for the April-June period, above the 394 million euros seen in
a company-compiled poll.
Philips stressed that it expects global market conditions to remain
highly uncertain, and that it had "a particular concern" over the
development of relationships between the United States, China and the
European Union, as well as China's drive to become self-sufficient in
critical technologies, including health-related ones
For the full year, the group expects comparable sales growth in the
mid-single digits versus previous guidance of low-single-digit growth
while its adjusted EBITA margin is now seen at the upper end of the
previously forecast high-single-digit range.
Philips shares fell 5% in early trade.
Analysts at ING said the new guidance was not too challenging given the
strong first-half figures, but Jefferies noted that order intake fell
for a fourth quarter in a row.
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![](../images/072423PIX/health72.jpg)
Dutch technology company Philips' logo
is seen at company headquarters in Amsterdam, Netherlands, January
29, 2019. REUTERS/Eva Plevier/File Photo
![](http://archives.lincolndailynews.com/2023/Jul/24/images/ads/current/fcs_funeral_lda_border_04029022.png) Philips has been grappling with the
fallout from the global recall of millions of respirators used to
treat sleep apnoea since it was announced in June 2021, setting
aside 575 million euros for lawsuits launched by patients who claim
to have suffered economic losses from using the devices.
The company said it had produced approximately 99% of the
replacement devices and repair kits required for remediation of the
registered affected respirators.
"Completing the Philips Respironics field action remains our highest
priority," Chief Executive Roy Jakobs said in a statement.
($1 = 0.8992 euros)
(Reporting by Diana Mandiá, editing by Kirsti Knolle, Kirsten
Donovan)
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