Profits in the third quarter at Philips have proved markedly stronger than expected and have prompted the Dutch medical devices manufacturer to lift its full-year forecast.
Philips reported income from operations of €224 million in the three months to the end of September, rebounding from a loss of more than €1.5 billion a year earlier.
The performance was driven by an 11 per cent increase in sales to €4.5 billion thanks to strengthening global demand for its medical scanners, patient monitoring equipment and personal health devices.
However, it said that its comparable order intake, covering about 40 per cent of group sales, was 9 per cent down on last time, blaming lower orders in China and longer lead times in its supply chains. Despite the fall in orders, Philips said it expected 6 per cent to 7 per cent comparable sales growth in 2023, with a profit margin of up to 11 per cent. Its previous outlook had suggested mid-single-digit sales growth with a high-single-digit profit margin.
Once known for making lightbulbs and televisions, Philips has sold off its consumer electronics subsidiaries to focus on the medical care technology market.
Source: The Times
Date: 25 October