Tuesday, April 22, 2014

Philips reports 15.0% profit slump, flags in medical markets








THE HAGUE—Electrical appliance group Philips reported a 15.0-percent slump in net first quarter profit on Tuesday, blaming a weak performance by its new strategic activities in healthcare equipment.


Net profit plunged to 137 million euros ($190 million) because of a fall in underlying profit on a 12-month comparison.


But this was better than the average figure forecast by analysts polled by Dow Jones Newswires who had expected a net figure of 114 million euros.


Sales on a comparable asset base were steady at 5.02 billion euros, but earnings before interest, tax and amortisation fell by 22.0 percent mainly because of a fall of profitability by the healthcare activities.


Philips, a world leader in the field of electrical appliances for the home, for industry and for local authorities, is in the process of refocusing much of its business on equipment for the medical sector where it has technological expertise and where margins are strong.


The group said that other factors behind the weaker results were unexpectedly high restructuring costs, unfavourable exchange rates, and unfavourable conditions on Chinese and Russian markets.


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Tags: Appliance , electrical , markets , medical , Philips , Profit , sales



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