Philips cuts tariff impact by 100 million euros after US-EU deal
The company now expects tariffs to cost between 150-200 million euros this year, down from its earlier forecast of 250-300 million euros.
Philips CEO Roy Jakobs stated that the U.S.-EU deal provided 'clarity' but emphasized the company would continue pushing for exemptions for the healthcare sector.
'The tariff impact has evolved and continues to be dynamic,' Philips said in a statement.
The company's Amsterdam-listed shares were projected to rise 4-5% in early trading.
Philips also raised its full-year core profit (EBITA) margin forecast to 11.3-11.8%, up from 10.8-11.3%, after reporting a stronger-than-expected second-quarter adjusted EBITA margin of 12.4%.
Despite trade tensions, Philips remains resilient in key markets. Jakobs noted that 90% of its products sold in China are locally manufactured, minimizing the impact of Beijing's recent restrictions on EU medical device purchases.
'The Chinese market is slowly recovering,' he added.
The company also secured a long-term agreement with Indonesia's Ministry of Health for its Azurion image-guided therapy system, reinforcing its presence in Asia. - Reuters
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