Philips CEO Doesn’t Expect Biden to Roll Back Chinese Tariffs ‘Anytime Soon’

Philips is “on track” to complete the “divestment” of its domestic appliances business in the third quarter, said CEO Frans van Houten on a Q4 investor call Monday. Domestic appliances are a strong business that “returned to robust growth with increasing margins” in 2020's second half, he said. “We continue to see good interest for the asset and remain open to different divestment options to deliver the best value for the company.” He identified no possible suitors. The “gross impact” to the domestic appliances business from the Section 301 tariffs on China was “substantial,” said van Houten. “We have mitigated that down to a level of around 25 million euros” by diversifying the supply chain, he said. If tariffs are “rolled back” under the Biden administration, that would be a “net positive for us," but “I don't see that happening anytime soon,” he said.