Dutch technology company Philips on Monday reported its sales in the third quarter increased 11% on a comparable basis to €4.5 billion ($4.8 billion), driven by growth in all segments.
Earnings before interest, taxes and amortization (EBITA) increased to €457 million from €209 million in the same quarter a year ago.
Looking forward, the company has raised its full-year comparable sales growth outlook to 6% to 7% from the previous guidance of low-single-digit growth.
Philips Slides as Order Drop Raises Doubts Over Sales Growth
Royal Philips NV slumped after the medical-equipment maker’s order intake dropped for a fifth quarter in a row on lower demand in China.
New orders fell 9% in the three months through September in part because of a sweeping corruption probe in China targeting the country’s health-care sector. Product delivery times also dragged longer.
“This may put pressure on sales growth in the next 12-18 months,” Jefferies analyst James Vane-Tempest said in an emailed note.
Philips dropped as much 5.3% in Amsterdam to the lowest level since April. The shares are still up around a quarter this year.
Read more: Philips Shares Drop After Decline in 3Q Orders: Street Wrap
While a few quarters will be “a bit more troubled in China,” Philips doesn’t expect the anti-graft measures to fundamentally change demand in the country, Chief Executive Officer Roy Jakobs said in a phone interview. Still, China’s impact on the quarter was “significant,” he said.
