Shares of Dutch device maker Philips surged over 8.5% in early trading on Monday following the announcement of second-quarter earnings that exceeded market expectations. By 8:25 a.m. London time, shares had slightly moderated their gains, trading up 7.83%.
The company’s comparable group sales increased by 2% to reach 4.5 billion euros ($4.88 billion). This growth was primarily driven by robust demand in North America, even as sales in China experienced a decline. Notably, Philips’ comparable order intake for the quarter saw a substantial increase of 9%.
CEO Roy Jakobs expressed optimism regarding the company’s performance, stating, “I am encouraged by our return to order intake growth this quarter, primarily driven by North America. Within a challenging macro environment, we achieved strong margin improvement, supported by our productivity program, solid operational cashflow due to improved working capital management, and comparable sales growth in line with our plan.”
This developing story highlights Philips’ resilience and strategic focus on productivity and operational efficiency amidst challenging global economic conditions. Stay tuned for further updates.
Original Story https://www.cnbc.com/2024/07/29/philips-shares-jump-8percent-on-second-quarter-growth-in-north-america.html
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