Philips: share falls as margin target reduced
(CercleFinance.com) - On Monday Philips announced a reduction in its full-year margin guidance after Q2 results that were broadly in line with expectations.
The Dutch healthcare equipment specialist said in a statement that it now expects its adjusted operating margin (EBITA) to improve by 60 basis points this year, compared with the 60-to-80 bp range previously expected.
The announcement sent the company's shares down in early trading, with Philips shares falling 1.2% at around 9.50 am, one of the biggest fallers in the AEX index, which was down 0.7%.
The group continues to expect organic revenue growth of between 0% and 5% this year.
Over Q2, the group reported organic sales growth of 9% at 4.2 billion euros, with an adjusted operating profit (EBITA) of 532 million euros, compared to 390 million euros a year earlier, above the consensus of 519 million euros.
Philips announced that it would start a new 1.5 billion euro share buyback program over the next three years, although this announcement failed to offset the disappointment of its reduced annual margin target.
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