A Philips office building in Warsaw, Poland, July 29, 2021.
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Group comparable sales rose 2 percent to 4.5 billion euros ($4.88 billion) as demand in North America was strong despite weaker sales in China. The company’s three-month comparable orders rose 9 percent.
“We are encouraged by the recovery in order volumes this quarter, primarily in North America. Given the challenging macro environment, we delivered significant margin improvement supported by our productivity improvement programs, strong operating cash flow driven by improved working capital management and planned same-store sales growth,” Chief Executive Officer Roy Jacobs said in a statement.
The company reported a number of cost savings in the period, including €195 million from productivity improvements, including €57 million from its operating model, €71 million from procurement and €67 million from other programs. Philips is embarking on a restructuring that will see it cut about 10,000 jobs from 2022 onwards, or 13% of its workforce as of January last year, Reuters reported at the time.
At the same time, Philips announced it had agreed to pay $1.1 billion to settle related to the Respironics personal injury lawsuit and U.S. medical monitoring class action lawsuits.
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