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 carlo.martuscelli@dowjones.com

 

(END) Dow Jones Newswires

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

Copyright (c) 2019 Dow Jones & Company, Inc.
Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Koninklijke Philips NV Charts.
Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Koninklijke Philips NV Charts.