Philips 1Q Net Income Rose 31%

   By Oliver Griffin

Koninklijke Philips NV (PHIA.AE) said Monday that its first-quarter net income rose 31% as certain cost-cutting programs delivered savings.

The Dutch technology company said net income for the quarter ended March 31 rose to 162 million euros ($180.5 million) from EUR124 million in the year-earlier period.

Income from continuing operations--an important metric for Philips--rose to EUR171 million from EUR94 million in the first quarter of 2018.

The company said first-quarter procurement savings amounted to EUR38 million, while other programs delivered savings of EUR75 million.

Sales for the quarter rose 5.2% to EUR4.2 billion, Philips said. Comparable sales rose 2%.

Philips reported that the margin on its adjusted earnings before interest, taxes and amortization rose to 8.8% of sales, compared with 8.7% of sales in the year-earlier period. Philips said it backed its target of 4%-6% comparable sales growth and an average annual 100-basis-points improvement in adjusted Ebita margin for 2017 to 2020.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

April 29, 2019 01:37 ET (05:37 GMT)

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