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Philips Electronics Q4 net income jumps to 899 million

Staff Writer | January 30, 2018
Philips Electronics eported significantly higher profit in its fourth quarter, reflecting gain from deconsolidation of Lighting as well as improved margins, while sales were flat.
Philips Electronics
Philips Electronics   0.91 euro per share
The company maintained its dividend, and also said it is confident on mid-term targets.

Further, the company said a proposal will be submitted to the Annual General Meeting of Shareholders, to be held on May 3, to maintain dividend at 0.80 euro per common share.

For the fourth quarter, net income climbed to 899 million euros or 0.91 euro per share from last year's 640 million euros or 0.67 euro per share.

Discontinued operations results increased by 248 million euros, mainly due to a 599 million euros net gain from the deconsolidation of Lighting, partly offset by a one-time noncash tax charge of 99 million euros due to the U.S. Tax Reform, a 104 million euros charge related to the market value of the retained interest in Philips Lighting, and the exclusion of Lumileds and Automotive from Discontinued operations following the divestment last year.

Net income from continuing operations amounted to 476 million euros, up from 465 million euros a year ago.

Adjusted EBITA margin increased 140 basis points to 16.7% of sales, mainly attributable to higher volumes, procurement savings and other cost productivity. Adjusted EBITDA margin increased 150 basis points.

Philips reported sales of 5.303 billion euros, nearly same as last year's 5.306 billion euros.

Comparable sales growth was 5 percent, driven by mid-single-digit growth in the Personal Health businesses and Diagnosis &Treatment businesses and low-single-digit growth in the Connected Care & Health Informatics businesses.

Sales in growth geographies increased 7% on a comparable basis, mainly driven by Central & Eastern Europe, Middle East & Turkey and China.

In mature geographies, sales increased by 3% on a comparable basis, driven by mid-single-digit growth in North America and Western Europe, partly offset by a lowsingle-digit decline in other mature geographies.

Comparable order intake increased 7%, reflecting double-digit growth in the Diagnosis & Treatment businesses and a low-single-digit decline in the Connected Care & Health Informatics businesses, as certain expected large orders were postponed to 2018.

Philips said its performance in the fourth quarter demonstrates that it is gaining momentum.