Philips sales and profits dropped sharply, optimism about second half

Revenue and profits fell in the second quarter hit by the crisis corona. For the rest of the year, the company optimistic: it thinks sales will grow again, partly because it received more orders for medical equipment.

As expected, Philips has also suffered from the coronavirus. Although the company sold equipment to treat patients corona, such as CT scanners, ventilators and systems that patients be monitored.

Turnover, however, fell with other medical devices, because hospitals ordering other medical equipment postponed. That is because for example fewer heart patients were treated, Philips CEO Frans van Houten said on RTL Z.

Furthermore, sales fell in consumer products, such as electric toothbrushes and razors.

On balance, sales in the months of April to May decreased by 6 percent to 4.4 billion euros. The revenue decline is less than was feared analysts.

Earnings before interest and taxes (EBIT) also fell, from 440 million euros to 388 million euros. Net profit decreased from 246 million euros to 210 million euros. Analysts had expected a net profit of 92 million euros.

The company is optimistic about the second half, Philips expects a growth of 27 per cent of orders. Over the first quarter the company saw the number of orders already increased by 23 percent.

Van Houten even think about can be very 2020 there has been a modest growth in sales. “So we expect a very strong second half.”

Investors are enthusiastic: the price of Philips state shortly after opening 3 percent.

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