The company is therefore also a bit more positive about the profitability for the current financial year. Philips increases the expected adapted profit margin from 10.8 to 11.3 percent to 11.3 to 11.8 percent. However, the import duties will still print the results for the third quarter, so that they will be lower than in the same period last year.
Departure NXP from Nijmegen certainly certainly: “Fear for 1700 jobs.”
After the presentation of the first quarterly results, Philips was more gloomy about profitability, partly due to the impact of the taxes. The extra costs would mainly be in the taxes that the United States introduced for products from China and the subsequent retaliation measures. Parts for Philips’ equipment that go from one country to the other became more expensive. In May, both countries lowered these taxes for a period of ninety days.
In the adjusted prognosis, Philips also brought the Handelsdeal between the United States and the European Union. General US import duties of 15 percent have been agreed on European goods.
Excepted
In an explanation, Philips CEO Roy Jakobs indicates that the company will continue to negotiate to be exempt from the taxes. According to him, they do not automatically lead to more expensive medical technology. Philips already produces a lot of locally, also in the US, which means that these devices do not get taxes.
Philips achieved a turnover of more than 4.3 billion euros from April to June, compared to more than 4.4 billion euros in the same period last year. A net profit of 240 million euros remained. That was 452 million euros a year earlier.
The company also announced a collaboration with the Ministry of Health in Indonesia on Tuesday, where technology for sculpted operations becomes available in hundreds of hospitals in the country. According to Philips, Hart-, Stroke and Cancer Care becomes more accessible to Indonesian patients.