Philips profits down in Q1 while LED sales jump

Apr 22, 2013

Dutch electronics giant Philips announced Thursday first quarter profits that were down 12 percent from the same period a year earlier, and confirmed that it expected only "modest" growth in the first half of 2013.

Despite the drop in net profit to 162 million euros (212 million dollars), sales of energy-efficient jumped 38 percent, and now account for 23 percent of total lighting sales.

The first-quarter figure was also slightly higher than predicted by analysts interviewed by Newswires.

Sales stood at 5.26 billion euros, down one percent from the first quarter of 2012 because of negative exchange rates, the company said in a statement.

"We reiterate our view of a slow first half to 2013, due to adverse , especially in Europe and the US," chief executive Frans van Houten was quoted as saying.

Philips said that after undertaking a cost and job reduction programme it had now 116,000 employees, around 3,800 less than a year earlier.

The company wants to shed 6,700 jobs in total.

Meanwhile, core earnings before interest, tax and amortisation (Ebita) stood at 402 million euros, or 7.6 percent of sales.

Excluding restructuring and acquisition costs, that figure rises to 421 million euros, up 31 percent compared with the same period last year.

Turnover in mature markets such as Europe and the United States, which account for over 65 percent of sales, was down one percent, but it rose by four percent in developing markets.

In January, Philips announced the sale of its entertainment business to long-term partner Funai, to focus further on health products.

The company has been historically known for its televisions, small appliances and , but has sought over the last decade to develop activities in the medical equipment and lifestyle sector.

In April last year the company sold its troubled television branch to TPV Technology.

Explore further: Samsung forecasts profit fall as S6 sales disappoint

Related Stories

Philips first-quarter net income down

Apr 18, 2011

Dutch electronics giant Philips said Monday that first-quarter net income had fallen 31.3 percent and announced a joint venture with Hong Kong-based TPV for its flagging television business.

Philips posts surprise profit as cost cuts help

Oct 12, 2009

Dutch electronics giant Philips reported on Monday a surprise profit for the third quarter as a series of cost cutting measures to cope with the global slump helped the bottomline.

Philips Q3 earnings rise, growth economies help

Oct 22, 2012

Royal Philips Electronics NV, the maker of electric shavers, light bulbs and medical imaging equipment, saw earnings more than double in the third quarter, thanks to modest growth at all its business lines ...

Philips loss shrinks in Q4; sheds division (Update)

Jan 29, 2013

Royal Philips Electronics NV Tuesday said it will sell the entertainment division which contains many of the consumer products for which it is best known, such as audio and video equipment, to Funai Electric ...

Amadeus quarterly profit soars 30 percent

Aug 03, 2012

Spain's Amadeus, the world's biggest processor of travel bookings, on Friday announced second-quarter net profits of 164.6 million euros ($200.9 million), up 30.3 percent on the same period last year.

Philips warns over television sector losses

Mar 28, 2011

Dutch electronics giant Philips warned Monday that it expects losses of between 100-120 million euros ($140-169 million) from its television business as pricing pressures mount.

Recommended for you

Amazon pushes Prime service with day of deals

17 hours ago

Amazon is trying to lure more subscribers to its $99 Prime loyalty program by pushing a day of discounts it calls "Prime Day" during the sleepier summer shopping season.

Mexico City proposes regulations for Uber

Jul 04, 2015

Mexico City is proposing regulations that would allow Uber and other smartphone-based ride-sharing apps to operate, while requiring drivers and cars to be registered, the city's Office of Legal and Legislative Studies said ...

Shyp reclassifies contract couriers as employees

Jul 03, 2015

Shyp, the quickly growing startup that provides on-demand courier services, said Wednesday it would reclassify its contract workers as employees, becoming the latest high-profile tech company to change how it compensates ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.