Philips reports good Q4 results
Dutch electronics company Philips reported Monday a turnover of EUR 8.37 billion in the fourth quarter of 2007.21 January 2008
AMSTERDAM - Dutch electronics company Philips reported Monday a turnover of EUR 8.37 billion in the fourth quarter of 2007.
The company's earnings before the deduction of interest, tax and amortisation expenses (EBITA) amounted to EUR 865 million.
Net profit was EUR 1.39 billion, thanks to a booking profit of some 1.1 billion.
The results of the Eindhoven-based company were slightly better than analysts had expected. The medical division, one of the most important divisions of the company, reported earnings before EBITA of EUR 354 million due to cuts in health care in the US.
The division consumer electronics and household appliances did better than expected, despite a weakening US market.
Total turnover for 2007 amounted to EUR 26.8 billion, a growth of 5 percent compared to 2006.
Net profit amounted to EUR 4.6 billion, partly due to a booking profit of EUR 3 billion on the sale of its interest in Taiwanese chip manufacturer TSMC and the producer of flat screens LG.Philips LCD.
Chairman of the board Gerard Kleisterlee said Philips was "on schedule" concerning the goals it set in its strategy Vision 2010. The company wants to increase turnover with an average 6 percent, realising a yearly profit margin of at least 10 percent.
Kleisterlee acknowledged the economic tide is not favourable, particularly in the US, but said he was convinced Philips would maintain its position.
Philips plans to give its shareholders a dividend of EUR 0.70 per share over 2007, 17 percent more than in 2006.
At the opening of the Amsterdam exchange, Philips was the only company whose shares initially rose - by 2.9 percent.
However, by 9:42 am, Philips' shares joined the falling trend shown by all other funds of the main index AEX, reporting a drop - down 0.24 percent.
[Copyright dpa 2008]
Subject: Dutch news