Dutch giant Philips already counting cost of rising US-Chinese trade tension
Restructuring costs and acquisitions hit first-quarter profit, which fell 27% from a year ago
Amsterdam — Dutch health technology company Philips says the rising trade tension between the US and China is having a negative effect on its results, as it drives prices of raw materials such as aluminium and steel higher. "So far the effects are modest, but we are worried about the trade tensions," CEO Frans van Houten said in a phone interview on Monday. "We don’t expect any tariffs to be imposed on medical equipment, but we see indirect effects through the costs of commodities." Van Houten said he expected Philips to maintain its current double-digit sales growth in China this year. The company posted a 27% drop in first-quarter profit, hit partly by the costs of restructuring and some acquisitions as it evolves its portfolio. Net income fell in the first three months to €94m from €128m in the same period in 2017, the company said on Monday. Best known for the manufacture of light bulbs, electrical appliances and television sets, the Amsterdam-based company has gradually pulled ...
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