Dutch health care technology company Philips reported weaker-than-expected third-quarter net income on Monday, citing subdued growth in key markets and foreign currency headwinds.
For the quarter ending Sept 30., Philips posted a profit of 292 million euros ($335 million), significantly below analyst expectations of 350.5 million euros.
Revenue increased to 4.31 billion euros from 4.15 billion euros for the same period last year, with comparable sales growth up 4 percent.
“The profit improvement of 40 basis points on the operating income could have been a bit higher if it were not for currency headwinds, which were sizable in the emerging markets. It is something that of course we will compensate as we go forward so not a structural issue,” Frans van Houten, CEO of Philips, told CNBC’s “Squawk Box Europe” on Monday.
“The other thing that we saw coming is the start of duties and sanctions against, something that we are concerned about, but I want to reiterate that overall Philips is on track to meet its goal of 4 to 6 percent of growth this year,” he added.
Since the separation of its lighting division in 2016, the firm focuses on medical devices and health care products ranging from medical scanners to toothbrushes.