Philips Pushed to Loss by Pensions Charges

AMSTERDAM—Royal Philips NV swung to a net loss in the fourth quarter but said that its operational performance continued to improve as it works toward the separation of its lighting division.

Philips said the net loss in the three months ended Dec. 31 was €39 million ($42 million) compared with a net profit of €134 million in the same period a year earlier, largely due to pension charges and other special items. Adjusted earnings before interest and taxes, the company's preferred measure of its operational performance rose to €842 million from €743 million a year ago. Sales rose 9% to €7.1 billion.

The earnings report is likely to be one of the last before Philips completes the separation of its nearly 125-years-old lighting arm, for which it is exploring either a sale or an initial public offering. The strategic overhaul comes as Philips seeks to focus on its more profitable healthcare-technology activities and related products.

Philips said its healthcare arm recorded a 15% rise in sales, boosted by strong order intake and favorable currency effects, while its lighting division recorded 3% sales growth. The company said comparable sales growth will be modest in 2016 as the macroeconomic environment remains challenging.

Write to Maarten van Tartwijk at [e-mail]

(END) Dow Jones Newswires

January 26, 2016 02:05 ET (07:05 GMT)

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