Philips Exceeds Q3 Earnings, Reaches DOJ Agreement on Respironics Recall
Philips Q3 Financial Performance and DOJ Settlement Overview
By Lucie Barbier
Q3 Earnings Surpass Expectations
Nov 3 (Reuters) - Dutch healthcare technology manufacturer Philips beat market expectations for third-quarter core earnings on Tuesday, driven by higher sales and gross margin alongside productivity measures.
Adjusted Earnings and Market Consensus
Philips, which sells products ranging from toothbrushes to medical imaging systems, reported a 7.2% rise in its adjusted earnings before interest, taxes and amortisation to €569 million ($637 million), exceeding a consensus estimate of €522 million provided on the company's website.
Respironics Recall and DOJ Agreement
Philips also said its Respironics unit had reached an agreement in principle with the US Department of Justice to resolve previously disclosed investigations linked to its global sleep and respiratory-care device recall.
Financial Provision for Settlement
It booked a €288 million provision in the quarter for the proposed DOJ settlement, which remains subject to final documentation and is expected to be paid in the first quarter of 2027. The co...