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Philips says its third-quarter sales in China slumped

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Co lowers sales forecast for 2024

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Q3 core profit in line with expectations as margins

improve

(Adds comment in paragraph 3, details and background

throughout)

By Bart H. Meijer

AMSTERDAM, Oct 28 (Reuters) - Philips said on

Monday that demand in China slumped significantly in recent

months, forcing the Dutch medical devices maker to lower its

sales outlook for the year.

"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.

"China remains a fundamentally attractive growth market for

Philips in the long term, with market conditions expected to

remain uncertain."

Philips now expects its comparable sales to grow by only

0.5% to 1.5% in 2024, down from previous forecast of 3% to 5%

which it said would still be met in other regions.

The company, which sells products ranging from toothbrushes

to medical imaging systems, is a main competitor of General

Electric ( GE ) and Siemens Healthineers.

The slowdown was most visible in the personal health

segment, where sales fell 5% in the third quarter due to a

double-digit decline in China.

The division that sells medical devices to hospitals

(Diagnosis & Treatment) saw sales decline by 1%, with "solid

growth" outside China, the Amsterdam-based company said.

Overall, comparable sales 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% year-on-year, as lower costs pushed the profit

margin up to 11.8%.

Philips said it expects its full-year core profit margin to

come in around 11.5%, the upper-end of its previous outlook.

($1 = 0.9266 euros)