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Philips Surges after Q3 Results, Layoffs
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Philips Surges after Q3 Results, Layoffs

Shares of Koninklijke Philips NV (NYSE: PHG) were up by more than 5% in pre-market trading on Monday after the Dutch conglomerate’s comparable sales grew 3% year-over-year in Q4 while sales came in at €5.4 billion.

However, disappointingly, PHG’s adjusted income from continuing operations fell 28% year-over-year to €0.41.

The company’s management termed the supply chain situation as “challenging” but Roy Jakobs, CEO of Royal Philips commented that its”order book remains strong, despite the comparable order intake decline in the quarter.” For FY22, PHG’s comparable order intake declined by 3% compared to a growth of 4% in 2021.

In a separate press release, the company announced the slashing of 6,000 jobs globally by 2025, of which 3,000 jobs will be cut this year. This announcement came in addition to the reduction in the workforce of 4,000 people announced back in October.

PHG announced that it had proposed to maintain a dividend of €0.85 per share.

Looking forward, Philips expects to deliver “low-single-digit comparable sales growth and high-single-digit Adjusted EBITA margin” this year. The company added that taking into consideration the “slowing of consumer demand and a gradual improvement of the order book conversion during 2023, Philips anticipates a slow start to the year.”

PHG stock has not fared well in the past year, down by 47.2%.

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