PHILPS Q2 net increase of 12.8% worries China slowdown

Holland PHILPS announced Monday, the second quarter net profit of 243 million euros over the same period last year rose 12.8% to 274 million euros ($301 million 600 thousand), net profit more than analysts expected 107 million euros, mainly benefited from the PHILPS healthcare sector revenue growth, consumer goods and lighting business to improve profitability.

PHILPS announced second quarter adjusted EBITA surplus by 27%, to 501 million euros ($550 million), higher than analysts expected 415 million euros, after the earnings announcement, PHILPS shares jumped 5.4% in early trading on Monday, the current stock price rose 3.7% to 25.075 euros this year, the share price rose 3.9% cumulative.

PHILPS's medical business profit margin improved in the second quarter, but was offset by the strong dollar and investment, and by the restructuring measures to boost the company's consumer goods and lighting business operating profit rose.

In addition, PHILPS is still expected to moderate growth in revenue this year, 2016 results will continue to improve, the company plans to sell or sell shares through the sale of lighting.

PHILPS CEO FransvanHouten said in a statement, although I would like to improve the company's operations, but increasingly concerned about the global macroeconomic environment, especially China, Russia and Latin america. He said that China's economic growth is indeed slowing, just like Brazil.

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