Philips’ shares surged over 10.5% in early trading on Monday, following the company’s robust second-quarter earnings report that surpassed expectations. The Dutch device maker revealed that comparable group sales increased by 2% to €4.5 billion ($4.88 billion), buoyed by strong demand in North America despite a downturn in China.
The company’s shares saw a slight adjustment, trading up 10.4% by 8:50 a.m. London time. Philips reported a 9% rise in comparable order intake for the quarter. CEO Roy Jakobs highlighted positive developments, including strong margin improvements and solid operational cash flow due to enhanced working capital management.
During this period, Philips achieved cost savings through productivity initiatives, including €195 million in productivity savings, €57 million in operating model savings, €71 million in procurement savings, and €67 million in additional savings from various programs. Since 2022, Philips has been undergoing a major reorganization, targeting a reduction of approximately 10,000 jobs, or 13% of its workforce.
In addition to these financial results, Philips has agreed to a $1.1 billion settlement related to Respironics personal injury litigation and medical monitoring class action in the U.S.
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