Philips’ earnings grow 60 percent in third quarter

Philips posts growth earnings
Photo Credit: Studio040

Philips made a profit of €341 million in the third quarter of 2020. That is 60 percent more than in the third quarter of 2019, when the multinational made a profit of 211 million euro.

In total, the Eindhoven-based company achieved a turnover of 5 billion euros in the third quarter of the year.

The increase in profit is mainly due to the increasing turnover in the medical equipment branch of the company. The industry’s turnover increased by 42 percent in the past quarter. That is mainly due to increased sales of patient monitors and ventilation equipment.

In addition, the company saw a slight increase, around six percent, in the personal care branch of the company.

Terminated contract
Philips’ growth rate is an encouraging result for the company. Especially since the U.S. government unilaterally terminated a multi-million dollar contract for the supply of respirators in August this year.

Surplus
Although there’re rumors that termination of the contract had to do with the (too) high price Philips was asking for the machines, the company informed Radio1 that it was dealing with a surplus of ventilation machines in the US.

Philips says that despite the uncertainty surrounding the pandemic, it’ll be able to achieve modest growth over the whole of 2020.

Source: www.studio040.nl

Translation: Chaitali Sengupta, who gives ONLINE Inburgering classes.

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