Philips to Review Options for Domestic-Appliances Unit; 4Q Net Profit Fell
January 28 2020 - 1:50AM
Dow Jones News
By Adria Calatayud
Koninklijke Philips NV (PHIA.AE) said Tuesday that it will
launch a review of options for its domestic-appliances business, as
it posted a 17% fall in fourth-quarter net profit.
Philips said it will start the process of creating a separate
legal structure as it evaluates options for future ownership of its
domestic-appliances business, which generated sales of 2.3 billion
euros ($2.54 billion) last year in kitchen appliances, coffee,
garment-care and home-care appliances. The process is expected to
be completed in 12 to 18 months, it said.
Net profit for the quarter to Dec. 31 was EUR556 million
compared with EUR673 million in the year-earlier period, the Dutch
technology company. Analysts expected a net profit of EUR602
million, according to a consensus forecast provided by the
company.
Sales for the quarter were up at EUR5.96 billion compared with
EUR5.59 billion a year earlier, with a 3% rise in comparable sales,
Philips said. Analysts expected quarterly sales of EUR6.03 billion,
according to a company-provided consensus.
Adjusted earnings before interest, taxes and amortization margin
rose by 50 basis points to 17.9%, the company said.
For 2020, Philips said it targets 4%-6% comparable sales growth
and an adjusted Ebita margin improvement of around 100 basis
points, with a performance momentum that is expected to improve in
the course of the year.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
January 28, 2020 01:35 ET (06:35 GMT)
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