April 20, 2024

Philips' second-quarter net profit of $300 million increased 13% year-on-year

Beijing time on July 28th news, according to "Wall Street Journal" reported that Royal Dutch Philips announced its second quarter earnings on Monday. The report shows that Philips' second-quarter net profit rose 13% compared with the same period last year, but expressed concern about the slowdown in emerging market economies.

The Amsterdam-based company produces a wide range of products, from hospital scanning equipment to coffee machines to light bulbs. In the second quarter, Royal Philips' net profit was 274 million euros ($301 million), up from 243 million euros ($270 million) in the same period last year; sales were 5.97 billion euros (about 6.63 billion) US dollar), up 20% from 4.97 billion euros ($5.52 billion) in the same period last year.

Philips' second-quarter results exceeded analysts' previous expectations, in part because the euro's exchange rate against other major global currencies fell, thus boosting its sales. In addition, Philips implemented cost-cutting measures and improved sales and profit margins in its healthcare division, which also contributed to its sales growth, which accounted for about 50% of the total net profit of the Philips Group.

After the earnings report, Philips' share price rose by 5%, the highest among the AEX benchmark stock indexes in Amsterdam.

But Philips CEO Frans van Houten is cautious about the company's performance outlook for the rest of FY2015, saying it is "increasingly worried" about global economic problems because of recent economic performance in China, Russia and Latin America. Weak. He pointed out that Royal Philips' sales from these growth markets accounted for approximately 35% of the Group's total sales, and the weak demand in these markets will result in the company achieving only "moderate sales growth" in 2015. .

China is Philips' second largest market by sales, and the company is still most worried about the Chinese market. Last year, Royal Philips’ sales from the Chinese market fell sharply by nearly 11% to 2.4 billion euros ($2.7 billion), as the company was facing difficulties in preventing its business downturn. Royal Philips said that the company's healthcare sector has seen a double-digit decline in orders, while lighting sales have fallen sharply, but sales of maternal and child care products have played a role in offsetting growth.

In the second quarter of the financial report, Royal Philips is preparing to withdraw from its 124-year-old lighting business, and instead focus on selling medical equipment and consumer electronics. The company will move the lighting division to an independent legal entity, paving the way for its IPO (IPO) listing in the first half of 2016.

Marriott said that he was encouraged by the performance of Royal Philips and said that the cost of divesting the lighting sector will be lower than previously expected. Royal Philips currently expects the cost of divestiture this year to be between 200 million euros and 300 million euros (about 220 million US dollars to 330 million US dollars), compared with the previous forecast of 300 million euros to 400 million euros (about 3.3 Between US$ 440 million and US$ 440 million.

At the same time, Royal Philips' healthcare division appears to have overcome problems at a Cleveland plant that is gradually resuming production. The factory was an important supplier of medical scanners, but it was closed in 2014 because the US Food and Drug Administration (FDA) found shortcomings in its manufacturing controls, prompting Royal Philips to issue a profit warning. Royal Philips said that the factory's shipments may return to normal levels before the end of the year.

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