(Reuters) - Dutch medical devices maker Philips on Monday lowered its sales forecast for the year due to declining demand in China, which pushed its order intake down 2% in the third quarter.
Philips' U.S.-listed shares tumbled over 16% in premarket trading.
Philips now expects comparable sales to grow by 0.5% to 1.5% in 2024, down from a previous expectation of 3% to 5%. It expects its core profit margin (adjusted EBITA) to come in around 11.5%, the upper end of its previous outlook.
"In the (third) 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 in a statement.
Philips, which sells products ranging from toothbrushes to medical imaging systems, said comparable sales in the third quarter were flat at 4.4 billion euros ($4.75 billion), missing the 2.1% growth analysts on average had predicted.
Adjusted earnings before interest, taxes and amortisation (EBITA) were exactly in line with expectations at 516 million euros, up 13% from the year before, as lower costs pushed the profit margin up to 11.8%.
($1 = 0.9266 euros)
