The electronics company struggled with disappointing sales, especially in the field of medical devices and in emerging markets like China and Russia.
Philips reported Tuesday a net profit of 134 million euros in the fourth quarter of 2014, against 412 million euros a year earlier.
Revenue increased, adjusted for currency effects and changes in the offer, with 2 percent to 6.54 billion euros. Operating profit (EBITA) was 262 million euro also two thirds lower than in the last three months of 2013.
Last quarter
The last quarter reflected according to CEO Frans van Houten difficulties Philips provides the whole of 2014. Higher sales and improved profit margins in 2015, but remains cautious about the recovery of the economy. In addition, the company expects continued uncertainty in various markets and non-recurring restructuring charges.
is the disappointing year, Philips put at a disadvantage relative to the goals set for 2016, Van Houten.
The revenue growth, operating profit and return on investment is now in his 1 percentage point lower than intended. However, this
Marathon
Van Houten said that the poor results do not affect his position. ” I continue, ” he said. ” I’ve always said that the reform of our business is a marathon and not a sprint. We are not done yet. ”
Philips is working on the privatization of its lighting division, after which the company wants to focus entirely on health technology. In that framework, set new goals in the course of the year for both parts.
The sale of the light components Lumileds and Automotive is expected to close in the first half of this year.
Despite the setbacks, Philips sets his course not, Van Houten stressed. ” These processes always go with ups and downs. In addition, look out: Who could have predicted that Russia would fall over or had the economic developments in China provide exactly right? We take the right measures and keep heading ”
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