Philips expects its profitability to improve due to the trade agreement between the EU and the US. Profit fell sharply in the second quarter, the technology group reports when presenting its quarterly figures.
Philips now expects the American import duties to cost the company 150 to 200 million euros this year. Previously, the group assumed an impact of 250 to 300 million euros. The company is therefore adjusting its profit forecast upwards.
When presenting the figures for the first three months of the year, Philips announced “significant” measures to alleviate the pain of the import duties. The technology group then adjusted its profit forecast downwards by around 11 percent.
Now Philips is increasing that expected profit percentage again: from 10.8 to 11.3 percent to 11.3 to 11.8 percent. It is a possible positive effect of the trade agreement, but not everyone is so positive about the agreement between the EU and the US.
Philips’ profit fell in the second quarter from 452 million euros to 240 million euros. That amounts to a decrease of 47 percent. Turnover amounted to 4.3 billion euros. That is 3 percent less compared to the second quarter of 2024.