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Dutch medical-technology firm Philips has lowered its outlook for profitability this financial year, blaming the US trade war.
In its latest financial results, Philips trimmed its profitability outlook for the year, as it calculated “the assumed impact of currently announced tariffs”.
In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control.
We are improving our supply chain agility, taking decisive cost actions to mitigate financial impact where possible, and ensuring we can continue to serve our customers and consumers.
“It’s still too early to fully understand our competitors’ responses to these tariffs,”
“It’s clear, however, that in this new environment, automakers with the largest U.S. footprint will have a big advantage.”
Given material near-term risks, especially the potential for industrywide supply chain disruption impacting production, the potential for future or increased tariffs in the U.S., changes in the implementation of tariffs including tariff offsets, retaliatory tariffs and other restrictions by other governments and the potential related market impacts, and finally policy uncertainties associated with tax and emissions policy, the company is suspending guidance.
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