US Edition
Philips shares up 10% as health tech giant flags reduced U.S. tariff impact
UNITED STATES, JUL 29 – Philips now expects a $230 million tariff impact, down from $275 million previously estimated, after an EU-US trade deal set tariffs at 15%, improving its profit outlook.
- Philips, a Dutch healthcare technology company, lowered its expected tariff impact from US import duties to 150-200 million euros on Tuesday after the US and EU agreed on a 15% levy for EU goods.
- This tariff reduction followed an initial estimate in April of a 20% rate causing costs between 250 and 300 million euros, as Brussels and Washington reached a weekend deal to soften the rate to 15%.
- Philips reported second-quarter sales of 4.3 billion euros, down 2.8%, and a 47% net profit fall to 240 million euros, while orders rose 6% on a comparable basis excluding currency effects.
- CEO Roy Jakobs emphasized the importance of having certainty in the agreement, even though the tariff represents a difficult extra expense for the company, and highlighted that they are maintaining positive momentum as they move into the second half of the year.
- Philips’ shares surged over 10% following the announcement, it raised its EBITA margin forecast to 11.3%-11.8%, and it continues targeting a 1-3% annual sales increase amid evolving tariff conditions.
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Philips expects import duties to cost between €150 and €200 million in the second half of this year. This estimate is based on…
·Netherlands
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Philips initially expected to lose more than €250 million due to the US tariffs. That figure has now been revised to over €150 million.
·Netherlands
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Philips expects the US import tariffs to have a smaller impact on its annual results than previously forecast. The healthcare technology company now expects the tariffs to have a negative impact of €150 million to €200 million. This was previously €250 million to €300 million. Philips reported this when announcing its second-quarter results.
·Amsterdam, Netherlands
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Coverage Details
Total News Sources37
Leaning Left5Leaning Right6Center9Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 25%
C 45%
R 30%
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