Philips second-quarter results

Shares of Royal Philips NV surged over 11% following the company's announcement of significantly higher second-quarter profits, which rose to €452 million from €74 million a year ago, largely due to €538 million in insurance income related to Respironics product liability claims. Despite nearly flat sales, with group sales at €4.462 billion down slightly from €4.470 billion in the previous year, the company reported a 2% increase in comparable sales driven mainly by strong demand in North America, while sales in China declined. CEO Roy Jakobs expressed optimism about order intake growth and strong margin improvement, supported by productivity savings and effective cash flow management. Looking ahead, Philips maintains its fiscal 2024 outlook with expectations of 3% to 5% comparable sales growth and an adjusted EBITA margin of 11% to 11.5%. The outlook does not account for potential impacts from ongoing legal proceedings related to Philips Respironics, including a $1.1 billion settlement agreed upon for litigation. Overall, the results reflect Philips' ongoing restructuring efforts and a commitment to its 2025 strategic plan amidst existing uncertainties.