Philips 4Q Net Profit Falls; Announces EUR1.5 Billion Buyback
January 29 2019 - 1:52AM
Dow Jones News
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.
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