Latest news with #RoyJakobs
The Star
3 days ago
- Business
- The Star
Global companies bullish on Chinese market's prospects
Foreign companies, especially those in Europe, are showing growing confidence in China's market potential, as the country's latest economic data underscores a steady recovery in consumption and industrial activity, reaffirming China's appeal as an engine of global growth. World business leaders expressed strong optimism about growth prospects in China, pointing to its vast consumer market, robust investment options in manufacturing and rising innovation capacity as key drivers of new development opportunities for multinational corporations based in Europe and beyond. They reaffirmed their long-term commitment to the Chinese market with plans to further expand investment in the world's second-largest economy, saying that China's steady economic momentum signals long-term potential and broader space for future growth. "China's vast and robust consumer market offers multinational corporations many opportunities, fueled by diversified demand drivers and significant growth potential," said James Zhou, chief commercial officer of Louis Dreyfus Co, a global agribusiness group based in the Netherlands. Roy Jakobs, CEO of Dutch multinational health technology company Royal Philips, also noted signs of stabilization in the Chinese economy, supported by the recovery in consumer activity. "We see consumer confidence and consumer spending rising, which is really encouraging," he said. According to data from the National Bureau of Statistics, China's retail sales grew 6.4 percent year-on-year in May, compared with a 5.1 percent rise in April, making it the fastest pace of growth since late 2023. Despite global uncertainties and rising geopolitical tensions, Jakobs said that Philips remains optimistic about China's prospects, betting on opportunities arising from the country's aging population, continued healthcare reform and rapidly advancing digital ecosystem to drive sustainable business growth. "In the mid- to long-term, we have a very strong outlook on China. We believe China will still be an important driver of global GDP," he said, adding that his company will strengthen its innovation hubs and establish a new one in Beijing. Malu Nachreiner, head of the Region Asia for the Crop Science Division of Bayer, said the Germany-based life sciences enterprise sees promising long-term growth prospects in the Chinese economy. China's steady economic growth indicates great potential for development, thereby providing foreign companies such as Bayer a broader scope for growth in the Chinese market, she said. In early 2025, Bayer launched a new supply center in Hangzhou, Zhejiang province, with an investment of 40 million euros ($46 million). "We are committed to continuing our investments, as we look forward to the opportunities that will arise as the market further opens up," Nachreiner added. French industrial software company Dassault Systemes also reaffirmed its strong commitment to the Chinese market. The company "benefits from China's high-quality development, with the demand driven by digital transformation presenting new opportunities for future business growth", said Zhang Ying, managing director of Dassault Systemes Greater China. Dassault Systemes has established innovation centers in seven cities, including Chongqing, Changchun in Jilin province, and Qingdao in Shandong province, while three more centers are currently under construction. As 2025 marks the company's 20th anniversary in China, "we will further expand our investment", Zhang said. Francisco Veloso, dean of INSEAD business school, said he believes China is poised for long-term growth, led by innovation and entrepreneurship, despite macroeconomic headwinds and rising global uncertainties. - China Daily/ANN
Japan Today
06-05-2025
- Business
- Japan Today
Philips reports profit but China, tariffs weigh
Dutch medical device maker Philips reported a net profit for the first time in three quarters Tuesday despite weak sales in China but warned of "intensified" uncertainties due to tariffs. Net profits came in at 72 million euros ($82 million), compared to a net loss of 998 million euros in the same quarter last year and 333 million euros in the fourth quarter of 2024. "It's an encouraging start to the year," the firm's chief executive Roy Jakobs told reporters. Jakobs predicted that the second half of the year would be stronger for the firm than the first half. "In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control," he added. The company estimated a hit of between 250-300 million euros from tariffs over the year. Philips maintained its forecast for between one and three percent growth in sales for 2025, but slightly cut its projection for earnings before special items (EBITA). The firm pointed to a two-percent growth in orders globally, with China again proving a drag. Without China, the order growth would have been four percent, Philips said. However, global sales were down two percent compared to the same quarter last year due to a "double-digit decline" in China, the firm said. Philips has previous warned that a slowing Chinese economy was hurting consumer demand for products and the government's anti-corruption drive was hitting procurement. Once famous for making lightbulbs and televisions among other products, Amsterdam-based Philips in recent years has sold off subsidiaries to focus on medical care technology. Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep. Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foams and fears it could potentially cause cancer. In April 2024, it announced it had reached a $1.1 billion deal to settle US lawsuits over the faulty machines. © 2025 AFP
RTÉ News
06-05-2025
- Business
- RTÉ News
Philips cuts annual profit estimates as trade war clouds outlook
Dutch healthcare technology company Philips has today cut its profit margin forecast for 2025, citing a net impact from tariffs of between €250-300m despite "substantial tariff mitigations". The US is Philips' largest market, accounting for about 40% of its projected 2024 sales and one-third of its tax contributions. The company imports various products from China, including Respironics breathing masks, electrical shavers, toothbrushes, and other devices, while sourcing medical equipment from Europe. Philips plans to reduce the potential impact of trade tensions, mostly from US tariffs on Chinese imports and China's counter tariffs, with actions including pricing and supply chain adjustments, CEO Roy Jakobs said on a post-earnings call. He added that the company would accelerate production at some of its 46 US locations and further localise its Chinese operations, which supply 90% of its market in the country. While the rates and timing of US tariffs on the health sector remain unclear, analysts anticipate that companies will likely have to absorb any near-term costs if these tariffs are imposed. Washington has launched an investigation into the pharmaceutical industry, laying the groundwork for possible levies. "We are in contact with governments in China, in the EU, in the Netherlands, and also in the US", Jakobs said. "We also talk about indeed excluding medical technology from the current tariff regimes." Philips plans to leverage relief measures including the so-called Nairobi Protocol, which exempts from tariffs some devices used to treat chronic conditions. Other cost reduction measures do not exclude job cuts, "but it's far beyond people alone," Jakobs said. Philips, which makes consumer electronics, appliances and medical equipment, paid €38m in US customs duties last year, according to a February report. Including the impact of tariffs, Philips now expects its adjusted earnings before interest, tax and amortisation (EBITA) margin to come in a range between 10.8% and 11.3%, down from previous forecast of 11.8%-12.3%. "This appears to factor in a resumption of all tariffs at currently announced rates," JP Morgan said in a note. "There is scope for upside on any lowering of the rates." The Dutch company reaffirmed its forecast for comparable sales growth of between 1% and 3% this year, after reporting a smaller-than-expected sales decline in the quarter. A strong performance in North America helped offset a decline in China. Sales for the quarter ended March 31 were €4.10 billion euros, down 2% year-on-year in comparable terms, but exceeding analysts' average forecast of €4.02 billion, according to a company-provided consensus. The company is a main competitor of GE HealthCare and Siemens Healthineers. GE HealthCare also warned that tariffs could impact its full-year profits, expecting losses of around $500m. Siemens Healthineers reports its first-quarter results this week.
CNBC
06-05-2025
- Business
- CNBC
We'll be taking major supply chain actions to mitigate tariff impact: Philips CEO
Monday - Friday, 08:00 - 11:00 CET | 14:00 - 17:00 HK/SG Squawk Box Europe Podcast Roy Jakobs, CEO of Philips, discusses the efforts the Dutch health technology firm is taking to mitigate the tariff impact from the United States, from localizing supply chains to "decisive cost actions."
Free Malaysia Today
06-05-2025
- Business
- Free Malaysia Today
Philips turns in a profit but China, tariffs weigh
In April 2024, Philips announced that it had reached a US$1.1 billion deal to settle US lawsuits over the faulty machines. (EPA Images pic) THE HAGUE : Dutch medical device maker Philips reported a net profit for the first time in three quarters today despite weak sales in China but warned of 'intensified' uncertainties due to tariffs. Net profits came in at €72 million (US$82 million), compared to a net loss of €998 million in the same quarter last year and €333 million in the fourth quarter of 2024. 'It's an encouraging start to the year,' the firm's chief executive Roy Jakobs told reporters. Jakobs predicted that the second half of the year would be stronger for the firm than the first half. 'In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control,' he added. The company estimated a hit of between €250 million and €300 million from tariffs over the year. Philips maintained its forecast for between 1% and 3% growth in sales for 2025, but slightly cut its projection for earnings before special items (EBITA). The firm pointed to a 2% growth in orders globally, with China again proving a drag. 'Without China, the order growth would have been 4%,' Philips said. 'However, global sales were down 2% compared to the same quarter last year due to a 'double-digit decline' in China,' the firm said. Philips has previous warned that a slowing Chinese economy was hurting consumer demand for products and the government's anti-corruption drive was hitting procurement. Once famous for making lightbulbs and televisions among other products, Amsterdam-based Philips in recent years has sold off subsidiaries to focus on medical care technology. Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep. Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foams and fears it could potentially cause cancer. In April 2024, it announced it had reached a US$1.1 billion deal to settle US lawsuits over the faulty machines.
