Philips increased its comparable turnover by more than 4 percent in the last quarter of 2018, a consensus of analysts shows. Philips publishes preliminary results on Tuesday. It would allow the technology company to achieve its own growth goal.

The market researchers expect a quarterly turnover of more than 5.5 billion euros, against 5.3 billion euros a year ago. A turnover of 18 billion euros is expected for the whole of 2018, against 17.8 billion euros a year earlier. This amounts to an organic sales growth of 4.3 percent, which is against the bottom of the company’s own target of 4 to 6 percent growth.

In the field of diagnosis and treatment, the fastest growth was achieved, the experts predict. Investors will continue to focus on exchange rate effects. In the third quarter, Philips suffered a lot from the decline in value of the Turkish lira and the Argentine peso; As a result, the turnover came under market expectations, which led to a sharp fall in the share price. The effect of trade tensions also causes a lot of headwind for the medical technology branch. The impact of this in the coming year will be closely monitored. According to analysts at JPMorgan, the trade tensions in 2019 will take a bite out of the profit margin.

Philips has recently succeeded in winning many new contracts from, among others, hospitals in the United States. For example, the collaboration with Jackson Health System, a major health care provider in the US, it was further expanded and contracts were signed with, among others, Dartmouth-Hitchcock Health, the University of Utah and the New York Presbyterian Hospital hospital group.

Furthermore, Philips recently added Bert van Meurs to the executive committee. He will lead the Image-Guided Therapy department, part of the diagnosis and treatment branch.

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