Dutch health care technology company Philips reported weaker-than-expected third-quarter net income on Monday, citing subdued growth in key markets and foreign currency headwinds.
Here are the key highlights:
Third-quarter net profit: 292 million euros vs. 350.5 million euros expected by analysts at data firm Refinitiv.
EBITA came in at 590 million euros in the third quarter, compared with 532 million euros in the same period last year.
“The profit improvement of 40 basis points on the operating income could have been a bit higher if it were not for currency headwinds, which were sizable in the emerging markets. It is something that of course we will compensate as we go forward so not a structural issue,” Frans van Houten, CEO of Philips, told CNBC’s “Squawk Box Europe” on Monday.
“The other thing that we saw coming is the start of duties and sanctions against, something that we are concerned about, but I want to reiterate that overall Philips is on track to meet its goal of 4 to 6 percent of growth this year,” he added.
Despite rising sales and improving margins, Philips posted a profit of 292 million euros ($335 million) for the quarter ending Sept 30. Analysts at data firm Refinitiv had been expecting third-quarter profit to come in at around 350.5 million euros.
Share repurchase program
Adjusted earnings before interest, tax and amortization (EBITDA) came in at 590 million euros in the third quarter, compared with 532 million in the same period last year.
Revenue increased to 4.31 billion euros from 4.15 billion euros in the same period last year, with comparable sales growth up 4 percent.
Since the separation of its lighting division in 2016, the firm focuses on medical devices and health care products ranging from medical scanners to toothbrushes.
The company also announced Monday it had initiated a share repurchase program for up to 5 million shares. At the current share price, this program is expected to total 174 million euros. It is expected to be completed by November 10.
Shares of Philips are up almost 10 percent year-to-date.