Philips reports sharp switch into annual profit

January 28, 2014 - 2:23:06 pm

THE HAGUE: Electrical appliance and household goods group Philips switched back into profit in the whole of 2013 and in the last quarter, the company said on Tuesday.

The group, which has developed rapidly in the high-margin medical equipment sector, reported net profit for the year of 1.17 billion euros or $1.6 billion from a loss of 30 million euros in 2012.

The turnaround was largely attributable to a leap in gross margins.

In the last quarter, profit amounted to 412 million euros from a comparable loss of 420 million euros.

The figures reflected increased profits and a reduction of restructuring charges, the group said, noting also that it had changed its accounting method during the year.

The results in 2012 had also been hit by a fine of several hundred million euros imposed by the European Commission for prix-fixing on television screens.

Sales in 2013 fell by 1.0 percent to 23.3 billion euros.

Earnings before interest, tax depreciation and amortisation more than doubled from 1.10 billion euros or 4.7 percent of sales in 2012 to 2.45 billion euros or 10.5 percent of sales in 2013.

The group said that it was cautious about the outlook for this year because of uncertainty about the macroeconomic situation, risks over exchange rates and falling orders in the fourth quarter. (AFP)