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Philips Q3 consolidated comparable sales up 2 percent

Staff Writer | October 24, 2016
Philips Electronic reported a higher profit in its third quarter driven by margin strength with improved performance in its segments.
Philips Electronics   The outlook for 2016 is unchanged
Consolidated comparable sales growth was 2 percent, driven by 5 percent increase in HealthTech portfolio.

Philips maintained its outlook for 2016 unchanged, as it expects further earnings improvements in the fourth quarter of the year. Going forward, the company however remains concerned about the risk due to volatility in the markets in which it operates.

For the third quarter, net income attributable to shareholders climbed to 370 million euros from last year's 319 million euros. Earnings per share were 0.40 euro, higher than 0.34 euro last year.

Income from operations or EBIT grew to 481 million euros from 342 million euros a year ago. EBITA margin was 9.6 percent, compared to 7.4 percent in 2015. Adjusted EBITA grew 14 percent year-over-year to 649 million euros, or 11.0 percent of sales, compared to 9.8 percent last year.

The operational improvements at the Personal Health and Diagnosis & Treatment businesses, as well as continued improvements at Philips Lighting led to the 120-basis-point increase in the adjusted EBITA margin.

Philips' sales edged up 1 percent to 5.90 billion euros from 5.84 billion euros a year ago.

The Personal Health businesses grew 7 percent on a comparable basis, with growth across the portfolio, most notably double-digit growth in Health & Wellness.

Equipment-order intake increased 8 percent on a currency comparable basis, driven by the Connected Care & Health Informatics businesses.