Philips second-quarter earnings beat forecast as pandemic fuels demand By Reuters



© Reuters. FILE PHOTO: Philips Healthcare headquarters is seen in Best, Netherlands August 30, 2018. REUTERS/Piroschka van de Wouw

(Reuters) – Dutch health technology company Philips on Monday beat analysts’ expectations with a jump in second-quarter core earnings to 532 million euros ($626 million), as the COVID-19 pandemic continued to spur demand for hospital equipment.

Analysts polled by the company on average had expected adjusted earnings before interest, taxes and amortisation (EBITA) to rise to 519 million euros in April-June, up from 390 million euros a year earlier.

Philips sells products ranging from toothbrushes to medical imaging systems, and is a main competitor of General Electric (NYSE:) and Siemens Healthineers.

Comparable sales increased 9%, beating an average expectation of a 7.3% rise. However, sales in its connected care division fell, dragged lower by its sleep and respiratory care business.

The company booked an additional provision of 250 million euros, following an earlier provision in the first quarter of this year, as it works to repair and replace millions of sleep devices it recalled earlier in June.

Last month, Philips recalled up to 4 million breathing devices and ventilators because of a foam part that might degrade and become toxic, potentially causing cancer.

“We are in discussions with the relevant regulatory authorities to obtain authorisation to start deploying the repair kits and replacement devices that we are producing,” Philips Chief Executive Frans van Houten said in a statement.

The U.S. Food and Drug Administration last week classified the recall of Philips’ breathing devices and ventilators as the most serious type of recall, saying the use of these devices may cause serious injuries or death.

The Amsterdam-based company confirmed its forecast of low- to mid-single-digit comparable sales growth for the whole of 2021.

($1 = 0.8492 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © 2019 Billionaire Club Co LLC. All rights reserved

Chat
Loading the chat ...