Philips is suffering from declining demand for medical equipment from China

Philips

This article was last updated on October 28, 2024

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Philips is suffering from declining demand for medical equipment from China

Chinese hospitals order less medical equipment from Philips. As a result, the company had less turnover in the third quarter than it previously expected.

Philips points out, among other things, the strict corruption policy in China. As a result, hospitals are more reluctant to order new equipment. Consumer demand was also disappointing. Philips cites low consumer confidence in China as the cause.

More medical equipment was sold in other regions. But in China there is “a further decline,” a press release said.

Grow

Philips expects turnover growth of 0.5 to 1.5 percent for the entire year of 2024. Previously, 3 to 5 percent was assumed. Philips shares were down around 16 percent on Monday morning.

Profit grew slightly last quarter, according to the company due to better productivity and more efficient applications in the field of artificial intelligence.

In its expectations for the rest of the year, Philips does not take into account possible developments in the sleep apnea affair. Earlier this year, the company reached a personal injury settlement in the United States. But there is also an ongoing investigation by the judiciary. That could result in a hefty fine.

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