Philips Q3 earnings boosted by virus healthcare demand

Agence France-Presse

Posted at Oct 19 2020 04:47 PM

Dutch health technology company Philips's logo is seen at company headquarters in Amsterdam, Netherlands, January 29, 2019. Eva Plevier, Reuters/File Photo

THE HAGUE, Netherlands - Dutch firm Philips said Monday its third quarter net profit rose sharply as its health arm got a boost from demand driven by the coronavirus pandemic.

Net profit for the three months to September jumped more than 63 percent from a year earlier to 340 million euros ($400 million) while sales were up 10 percent at five billion euros, said the company which has diversified out of its traditional electrical appliances business into health.

"I am pleased that, under challenging circumstances, we have been able to execute our plans and return to growth and improved profitability," CEO Frans van Houten said in a statement.

Van Houten highlighted the progress made by the medical division.

"It is clear that the Covid-19 pandemic is far from over, and our teams remain fully focused on delivering against our triple duty of care -- meeting critical customer needs, safeguarding the health and safety of our employees, and ensuring business continuity," he said.

Investors welcomed the figures and an accompanying upgrade to its 2021-25 sales forecast, pushing the shares up nearly four percent in early trade on the Amsterdam stock market.