AMSTERDAM (dpa-AFX) - Shares of Philips Electronics NV surged around 47
percent in the morning trading in Amsterdam as well as around 44 percent in the
pre-market activity on the NYSE after the Dutch consumer electronics giant
announced Monday that Philips Respironics will pay a total of $1.1 billion to
settle personal injury and medical monitoring litigation in the US. The company
also announced a wider loss in its first quarter and maintained annual outlook.

Roy Jakobs, CEO of Royal Philips, said, 'We started the year in line with our
plan, with order intake growth outside China turning positive and strong margin
improvement. Supported by key innovation launches and strong focus on our
execution priorities, we remain confident in our performance improvement plan
for 2024.... The approved consent decree and economic loss settlement, and now
the resolution of the personal injury and medical monitoring litigation in the
US, are significant milestones and provide further clarity on the way forward
for Philips.'

For the full year 2024, Philips continues to expect 3 percent-5 percent
comparable sales growth and an adjusted EBITA margin of 11 percent to 11.5
percent.

Philips reiterated its confidence in delivering the 2025 plan, acknowledging
that uncertainties remain.

Further, Philips said that the company and plaintiffs have reached an agreement,
following mediation with Judge Diane Welsh, to settle personal injury litigation
and a medical monitoring class action in the US, aiming to resolve uncertainties
associated with litigation.

The settlement addresses claims filed in US courts and potential claims
submitted to the census registry. Meanwhile, Philips and Philips Respironics do
not admit any fault or liability, or that any injuries were caused by
Respironics' devices.

Under the settlement, Philips Respironics will make the $1.1 billion payments in
2025, funded from Philips' cash flow generation. Consequently, a 982 million
euros provision was recognized in the first quarter 2024.

In April 2024, Philips Respironics signed a court-approved consent decree and
obtained final court approval for a previously announced economic loss
settlement in the US, for which a provision was recognized in the first-quarter
2023.

Furthermore, Philips concluded an agreement with insurers to receive 540 million
euros to cover Respironics recall-related product liability claims. This income
is anticipated to be recognized in the second-quarter of 2024, with payment
expected during the same year.

In its first quarter, net loss attributable to shareholders widened to 999
million euros or 1.10 euros per share from last year's net loss of 665 million
euros or 0.72 euros per share.

The results were hurt by Respironics litigation provision and higher tax
expense, partly offset by improved operational performance.

Philips' adjusted income from continuing operations attributable to shareholders
for the first quarter was 235 million euros or 0.26 euros per share compared to
192 million euros or 0.21 euros per share in the prior year.

Sales for the first quarter declined 1 percent to 4.14 billion euros from 4.17
billion euros a year ago. Group comparable sales increased 2.4 percent, driven
by growth in the Diagnosis & Treatment and Personal Health segments, partly
offset by a decline in Connected Care.

Comparable order intake, meanwhile, was down 4%.

In Amsterdam, Philips shares were trading at 28.98 euros, up 46.8 percent.

In pre-market activity on the NYSE, the shares were trading at $30.31, up 43.9
percent.

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