Philips lowers sales outlook on drop in China orders [Video]

Dutch medical device maker Philips lowered Monday its full year sales target, blaming drop in demand from Chinese hospitals as it released third quarter results.

Markets reacted negatively to the announcement with Philips’s share price dropping by more than 11 percent in morning trading on the Amsterdam stock exchange’s blue-chip AEX index.

A “significant deterioration” in Chinese demand forced Philips to adjust its expected growth in sales to 0.5 to one percent for 2024, the Amsterdam-based company said.

Philips had previously anticipated three to five percent sales growth.

“In the quarter, demand from hospitals and consumers in China further deteriorated, while we continue to see solid growth in other regions,” chief executive Roy Jakobs said.

“We have adjusted our full-year sales outlook to reflect the continued impact from China,” Jakobs said.

Third quarter sales came in at 4.37 billion euros ($4.7 billion), a drop of two percent from the same …