Philips faces $69m hit from Trump trade war

The CEO of Royal Philips (NYSE:PHG) told analysts today that the Dutch healthcare giant is looking at a $69 million hit from Donald Trump’s trade war with China, as it transfers hundreds of millions worth of production between the countries. “This is not peanuts,” Frans van Houten said today during a conference call to discuss Philips’ fourth-quarter and 2018 results, according to Reuters. “These are serious changes to our supply chains.” The company said it still expects the trade war to deliver a €60 million ($68.5 million) hit to core profits this year. Fourth-quarter profits were €678 million, or €0.91 per share, on sales of €5.59 billion during the three months ended Dec. 31, 2018, down -24.6% and up 5.3%, respectively, compared with the same period in 2017. Full-year profits were down -41.3% to €1.10 billion, or €1.75 per share, on sales growth of 1.9% to €18.12 billion. The results, which topped expectations, plus a proposed dividend hike and a €1.5 billion stock buyback, sent PHG shares up 2.1% to $37.69 apiece in New York this morning. “We continued to make progress during the year and delivered 5% comparable sales growth in the fourth quarter, with good mid-single-digit growth in our diagnosis & treatment businesses, low-single-digit growth in our personal health businesses in line with our expectations for this year, and higher IP royalties. I am encouraged by the comparable order intake growth i...
Source: Mass Device - Category: Medical Devices Authors: Tags: Featured MassDevice Earnings Roundup Wall Street Beat Royal Philips Source Type: news