Philips Confident of Sales-Growth Target Amid U.S. Weakness

  • ‘Nothing to worry about,’ CEO says, citing strong order book
  • Cautious U.S. weighs on outlook; other markets resilient

Philips CEO Sees First Quarter as Solid Start for Year

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Royal Philips NV said a strong order book and resilient performance in markets including China and India would allow the Dutch health-care equipment provider meet sales targets, even as uncertainty surrounding U.S. policy led hospitals there to delay spending.

The company reiterated a full-year revenue growth target of between 4 percent and 6 percent for its health technology businesses, which excludes the Philips Lighting NV unit that was spun off last year. First-quarter sales on the same basis rose 3 percent, meaning the Amsterdam-based company needs “to do more” in the second half, Chief Executive Officer Frans van Houten said.