Philips 4Q Net Profit Falls; Announces EUR1.5 Billion Buyback

By Carlo Martuscelli

Koninklijke Philips NV (PHIA.AE) said Tuesday that fourth-quarter net profit decreased 22% and announced the start of a new 1.5 billion euro ($1.71 billion) share-buyback program.

The Dutch electronics producer said net profit was EUR673 million compared with EUR860 million a year earlier. It attributed the decrease to the deconsolidation of lighting business Signify NV (LIGHT.AE).

Sales totaled EUR5.59 billion, up from EUR5.30 billion in the previous-year period. On a comparable basis, sales were up 5%, Philips said.

The company said its adjusted earnings before interest, tax, and amortization margin expanded 70 basis points to 17.4%, despite a 40 basis point adverse currency effect.

"I am encouraged by the comparable order intake growth in the Connected Care & Health Informatics businesses, which drove the 10% comparable order intake growth for the group," said Chief Executive Frans van Houten.

Philips backed its targets for 2017 to 2020 of 4% to 6% comparable sales growth and an average annual 100-basis-point improvement in adjusted Ebita margin.

The company proposed to increase its dividend by 6% to EUR0.85 per share.

Write to Carlo Martuscelli at [e-mail]

(END) Dow Jones Newswires

January 29, 2019 01:37 ET (06:37 GMT)

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