Philips shares up 10% as health tech giant flags reduced U.S. tariff impact
UNITED STATES, JUL 29 – Philips now expects a $230 million tariff impact, down from $275 million previously estimated, after an EU-US trade deal set tariffs at 15%, improving its profit outlook.
- Philips, a Dutch healthcare technology company, lowered its expected tariff impact from US import duties to 150-200 million euros on Tuesday after the US and EU agreed on a 15% levy for EU goods.
- This tariff reduction followed an initial estimate in April of a 20% rate causing costs between 250 and 300 million euros, as Brussels and Washington reached a weekend deal to soften the rate to 15%.
- Philips reported second-quarter sales of 4.3 billion euros, down 2.8%, and a 47% net profit fall to 240 million euros, while orders rose 6% on a comparable basis excluding currency effects.
- CEO Roy Jakobs emphasized the importance of having certainty in the agreement, even though the tariff represents a difficult extra expense for the company, and highlighted that they are maintaining positive momentum as they move into the second half of the year.
- Philips’ shares surged over 10% following the announcement, it raised its EBITA margin forecast to 11.3%-11.8%, and it continues targeting a 1-3% annual sales increase amid evolving tariff conditions.
37 Articles
37 Articles
Philips closed at the top of the major stocks on the Amsterdam Stock Exchange on Tuesday. When announcing its quarterly results, the healthcare technology company said it expected less impact from US import tariffs on its annual results than previously forecast. This made Philips slightly more optimistic about its profitability this year. The profit margin was also higher than expected in the second quarter. The stock closed 9.3 percent higher.
Company raised profitability projection with lower tariff impact
Dutch medical equipment and personal care products maker Philips reported a nearly 50 percent year-on-year drop in profit in the second quarter of this year, after a one-off revenue loss last year. However, the Eindhoven-based company has reduced the expected negative impact of higher US tariffs by about a quarter.
Philips expects import duties to cost between €150 and €200 million in the second half of this year. This estimate is based on…
Coverage Details
Bias Distribution
- 44% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
