Amsterdam: Shares of Philips surged over 10.5 percent in early trading on Monday after the Dutch device maker reported better-than-expected second-quarter earnings. The stock had slightly pared gains, trading up 10.45 percent.
Philips' comparable group sales rose by 2 percent to 4.5 billion euros ($4.88 billion), driven by robust demand in North America, despite a dip in sales in China. The decline in China was attributed to Beijing's push for self-sufficiency in critical technologies, including healthcare, amid escalating U.S.-China tensions. Despite this, Philips noted that China remains a "fundamentally attractive growth market."
As per reports, the company's comparable order intake also grew by 9 percent over the three-month period. Philips, which produces medical devices and personal care products such as electronic toothbrushes, reported several cost-saving measures, including 195 million euros in productivity savings. These included 57 million euros from operating model savings, 71 million euros from procurement savings, and 67 million euros from other programs.
Philips' reorganization efforts, aimed at cutting approximately 10,000 jobs or 13 percent of its workforce as of January last year, have contributed to the company’s cost savings and improved financial performance.
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