Philips reported second-quarter results that exceeded analysts' expectations on Monday thanks to cost savings, partly from job cuts, and flagged a big insurance payout linked to liability claims, sending its shares more than 10% higher.
The Dutch medical device maker's adjusted earnings before interest, tax and amortisation (EBITA) rose 9.3% to 495 million euros ($537.4 million) in the quarter, beating the 433 million euros expected by analysts polled by the company.
Since late 2022, Philips has said it would slash up to 10,000 jobs in an attempt to restore profitability and improve product safety.
"We announced that we would reduce 10,000 roles. We did 8,000 in the first year, 2023. This year, we have reduced 1,000 roles," said CEO Roy Jakobs in a press call. "You see the benefits coming back in the quarter."
https://www.reuters.com/business/healthcare-pharmaceuticals/philips-posts-q2-profit-beat-boosted-by-north-america-orders-2024-07-29/