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* Sales growth of Philips Q2 is lower than analyst expectations * Sales of personal health products in China decline * Philips CEO said sales growth will be in H2 (
Add CEO quote, share price, analyst review, outlook more details for H2)
Amsterdam, July 23 (Reuters)-
The company said on Monday that temporary problems in China led to disappointing sales in the second quarter of Philips, a Dutch healthcare technology company, but expects sales growth to strengthen in the second half of the year.
Philips's comparable sales rose 4% last quarter to 4.
29 billion euros.
This is the bottom of the company's target range, below the 4 average.
According to a Reuters poll, as sales of personal health care products decline in China, 9% are expected.
Chief Executive Frans van Houten said it was mainly due to a decline in demand for air purifiers as China made progress in its fight against air pollution and China
Sellers cut inventory.
"We are not worried about these developments," Van Houten told Reuters in a telephone interview . ".
"There is no structural problem in China.
The second half of the year will be better for our personal health department and overall.
Philips has maintained its forecast for the annual "medium single digit" growth of the personal health department, which has products from toothbrushes to machines that ease sleep pauses.
Sales in the sector rose 2% in the second quarter.
Philips shares fell 3. 1% to 35.
Greenwich Time is 0835 euros, making them one of the worst performers of the Amsterdam blue chip AEX index, with analysts saying the performance of the personal health sector is their main concern.
Berenberg analyst Scott Bardo said in a report: "The top line is a bit soft, mainly due to personal health, however, the new launch should see this improvement in H2.
Despite losses on Monday, Philips shares have risen 13% since the beginning of the year.
Van Houten said his optimism for the coming months is mainly due to continued strong growth in hospital equipment orders such as medical scanners and ultrasound machines, especially in China and the United States.
Hospital orders in these markets again saw double-digit growth in the second quarter, leading to an overall 9% increase in new orders.
"We have seen the growth rate of orders for several quarters," Van Houten said . ".
"This tells us that we are on the right path.
"The strength of the Diagnostic and Therapeutic Sector helps adjust the pre-interest, tax and amortization earnings (EBITA)
Up 10% to 0. 482 billion euros ($565. 5 million)
In the second quarter, analysts expected.
Van Houten confirmed that Philips's sales growth target for this year is 4-6%, but said that trade concerns and the unknown consequences of Brexit continue to create uncertainty.