Amsterdam (AFP) – Dutch healthcare technology giant Philips bolstered its earnings outlook Tuesday after obtaining 186 million euros ($211 million) in US tariff refunds, winning back almost all of the cash levied, director general Roy Jakobs said. The US Supreme Court in February struck down the bulk of US President Donald Trump’s tariff blitz, saying the tariffs exceeded his powers to regulate commerce.
“When there was the opening to claim for tariff refund based on the court ruling, we were one amongst the first to very proactively hand in all the requirements to apply for it,” Jakobs told reporters on a conference call. “And therefore, we are also one of the first to get it back almost in full.” Given the company makes almost half of its sales in North America, Philips had been hard hit by the tariffs, and the refund helped it to report better than forecast second-quarter profit margins.
Whilst the remainder of this refund will be paid out in the third quarter, the company is still facing the customs duties most recently imposed by the US president. “We believe tariffs is an unfortunate… reality that we need to take into account if you want to do business in this world,” said Jakobs. Philips reported late Monday its net profit had risen to 386 million euros in the second quarter, compared with the 240 million for the same period in 2025.
Long known for its light bulbs and televisions, the Dutch consumer electronics giant has since refocused production on medical equipment. Quarterly sales came in at 4.4 billion euros, compared with 4.3 billion for the same period last year. The group maintained its forecast for annual revenue growth of between 3 and 4.5 percent.
The group continues to face legal proceedings following a recall, initiated in 2021, of its DreamStation sleep apnoea devices, found to stop working intermittently. 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 foam 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 without admitting any liability.
© 2024 AFP
