Health Technology strut results of Philips – Financieele Dagblad

The technology company Philips has stepped up results over the past year, partly due to strong growth in the branch healthcare technologies. For this year, the company expects modest revenue growth and expects to build on improvements in operating profit.

This appears from the annual results Tuesday that Philips has presented for exchange. These are the latest figures which Royal Philips has also included the results of the light division integral. This semester, the group wants to privatize this resource, possibly through an IPO, or by selling to private equity shares. Royal Philips goes further in health technology.

Philips recorded a turnover of € 24.2 billion in 2015, compared to € 21, 4 billion in 2014. A significant portion of this growth was due to currency effects. Adjusted for this, sales growth was 2%.

Cleveland

At health technology turnover ratio went up faster, by 4% .Daarbij should be noted that Philips in 2014 was faced with setbacks at a factory in Cleveland, which manufactures medical systems . Who left that year a heavy impact on the results. The number of orders booked in the care division increased last year by 5%, an ‘encouraging’ growth according to CEO Frans van Houten in a statement.

The net profit in 2015 at € 659 million, against € 411 million. As in 2014, net profit was significantly impacted by non-recurring costs. Earnings per share rose from € 0.45 to € 0.70.

The operating result before exceptional items, taxes, interest expense and amortization (EBITA) increased by € 1.9 billion to € 2.24 billion. All units contributed to the improvement of this important gain for Philips understanding.

Especially did in the last fourth quarter Philips good business. The EBITA rose by 13% to € 842 million. This was more than € 798 million, which analysts had expected on average. Also accelerated the growth of the healthcare division. Order intake increased in the last three months of the year by 15%.

Retirement Payment

Because of a one-time pension payment the company recorded in the fourth quarter or a loss of € 39 million. Philips had made last autumn already known that the pension risks in the US and the UK had bought a one-time operation that hundreds of millions were at stake.

The lighting division saw sales in 2015 to grow by 8% to € 7.4 billion. But adjusted for exchange rate effects, revenues declined 3%. Especially the lower sales of traditional bulbs were responsible. With an operating profit of € 707 million, operating margin to 9.5%, from 8.6% in 2014.

Philips proposes to maintain the dividend at € 0.80 per share.