Philips' shares increased by more than 10% after the company announced second-quarter results on Monday that above analysts' projections due to cost reductions, some of which came from job cutbacks, and the disclosure of a sizable insurance settlement associated with liability claims.
Adjusted earnings before interest, tax, and amortisation (EBITA) for the Dutch medical device manufacturer increased 9.3% to 495 million euros ($537.4 million) in the quarter, above the 433 million euros that the firm had surveyed analysts to anticipate.
Philips has stated that it would eliminate up to 10,000 positions in an effort to increase product safety and return profitability from late 2022.
"We announced that we would reduce 10,000 roles. We did 8,000 in the first year, 2023. This year, we have reduced 1,000 roles," said CEO Roy Jakobs in a press call. "You see the benefits coming back in the quarter."
The Amsterdam-based company said that these increases in productivity resulted in savings of 195 million euros between April and June.
The North American market helped the quarterly order intake, a leading sign of future sales, rebound for the first time in the past two years, up 9% year over year, according to Philips.
In the same time, sales increased by 2% to 4.5 billion euros, as anticipated. However, according to Philips, a fall in China had a partly negative impact on the growth.
Not included in the corrected numbers, the corporation additionally collected 538 million euros in insurance revenues from liability claims pertaining to its recalled Respironics devices.
In order to resolve all personal injury lawsuits pertaining to Respironics breathing devices and ventilators that were filed in the United States, Philips announced during the first quarter that it had agreed to pay $1.1 billion.
It has been dealing with the consequences from the recall of millions of gadgets for the past three years due to worries that the foam used in them might break down and become toxic, increasing the risk of cancer.
The business restated its earnings goals for the remainder of the year.
(Source:www.business-standard.com)
Adjusted earnings before interest, tax, and amortisation (EBITA) for the Dutch medical device manufacturer increased 9.3% to 495 million euros ($537.4 million) in the quarter, above the 433 million euros that the firm had surveyed analysts to anticipate.
Philips has stated that it would eliminate up to 10,000 positions in an effort to increase product safety and return profitability from late 2022.
"We announced that we would reduce 10,000 roles. We did 8,000 in the first year, 2023. This year, we have reduced 1,000 roles," said CEO Roy Jakobs in a press call. "You see the benefits coming back in the quarter."
The Amsterdam-based company said that these increases in productivity resulted in savings of 195 million euros between April and June.
The North American market helped the quarterly order intake, a leading sign of future sales, rebound for the first time in the past two years, up 9% year over year, according to Philips.
In the same time, sales increased by 2% to 4.5 billion euros, as anticipated. However, according to Philips, a fall in China had a partly negative impact on the growth.
Not included in the corrected numbers, the corporation additionally collected 538 million euros in insurance revenues from liability claims pertaining to its recalled Respironics devices.
In order to resolve all personal injury lawsuits pertaining to Respironics breathing devices and ventilators that were filed in the United States, Philips announced during the first quarter that it had agreed to pay $1.1 billion.
It has been dealing with the consequences from the recall of millions of gadgets for the past three years due to worries that the foam used in them might break down and become toxic, increasing the risk of cancer.
The business restated its earnings goals for the remainder of the year.
(Source:www.business-standard.com)