Local and International Headlines

Coronavirus Affects Philips Turnover and Profit

0 25,028

Philips expects to grow again in the second half of this year. The medical device maker said that the figures for the second quarter of this year in which turnover and profit from the coronavirus lagged last year.

 

For the year as a whole, Philips is now thinking of “modest” growth in comparable sales and the operating profit margin (EBITA).

As in the first three months, Philips sold more CT scanners, respirators and patient monitoring systems. Production of those products, which are necessary for the treatment of corona patients, has also been increased. The number of new orders for Philips rose by more than a quarter.

At the same time, hospitals in many parts of the world decided to put the installation or ordering of other products on the somewhat longer track, which led to fewer orders for different products.

This was partly because the treatment of patients other than people with the coronavirus was put on the back burner. Demand for consumer products also dropped by almost a fifth.

Philips sales amounted to EUR 4.4 billion from April to June, 6 percent less than a year earlier. Net profit was 210 million euros. That was 246 million euros in the second quarter of last year.

In the second quarter, Philips posted cost savings of 108 million euros. All this year, the company wants to cut 400 million euros in costs.

Leave A Reply