Philips slumps as it cuts guidance on weak demand in China
** Shares in Philips PHG.AS fall 14.6% after the Dutch medical devices maker cut its 2024 guidance due to weak demand in China
** It reports weaker than expected Q3 sales, down 0.5% yoy vs consensus estimate for 2.1% growth; order intake falls 2% vs 9% growth in Q2
** "In the (third) quarter, demand from hospitals and consumers in China further deteriorated, while we continue to see solid growth in other regions," CEO Roy Jakobs says in a statement
** Philips expects comparable sales to grow by 0.5%-1.5% in 2024, down from previous forecast of 3%-5% which it said would still be met in other regions
** "We remain concerned that recent order trends (avg -3% in the past 18M) will put pressure on sales growth well into '25," Jefferies says in a note
** The stock is on track for its worst day since Jan. 12, 2022 if the losses persist
Reporting by Alban Kacher
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