Philips' office building in Warsaw, Poland, on July 29, 2021.
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Dutch appliance maker shares Philips Apple Inc. shares jumped more than 10.5% in early trading Monday after the company reported better-than-expected second-quarter earnings.
Shares pared gains slightly to trade up 10.4% by 8:50 a.m. London time.
Group comparable sales rose 2% to €4.5 billion ($4.88 billion), with demand continuing to be strong in North America, even as sales in China declined. The company’s comparable order volume for the three-month period was up 9%.
“I am optimistic about our return to order growth this quarter, driven primarily by North America,” CEO Roy Jacobs said in a statement. “In a challenging economic environment, we delivered strong margin improvement, supported by our productivity program, strong operating cash flow due to improved working capital management and comparable sales growth in line with our plan.”
The company reported a number of cost savings during the period, including productivity savings of €195 million across its operating model, €57 million in savings, €71 million in procurement and €67 million in other programmes. Since 2022, Philips has embarked on a reorganisation aimed at cutting nearly 10,000 jobs, or 13% of Philips’ workforce as of January last year, Reuters reported at the time.
Meanwhile, Philips said it has agreed to pay $1.1 billion in a settlement related to a Respironics personal injury lawsuit and a mass medical surveillance lawsuit in the United States.
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