Philips Reports Sales, Income Gains For Q4
by Steve Smith -- TWICE, 1/28/2007
AMSTERDAM, THE NETHERLANDS — Philips reported higher sales and net income corporately in the fourth quarter, but is mulling CE changes going forward.
Comp sales increased by 8 percent to $12.1 billion, driven by strong growth in lighting and the consumer businesses. Net income was $2.02 billion, up from $987.5 million in the prior year's quarter.
EBITA as a percentage of sales grew by 1.1 percentage points, compared with 2006's fourth quarter, to reach 10.3 percent, or $1.26 billion.
Earnings increased by $1.58 billion in part on the sale of stake in LCD maker LG.Philips last fall. Philips now owns a 20 percent stake in the venture, and Gerard Kleisterlee, president/CEO of Philips, was quoted by the Nikkei Business Daily last week that it would look to sell most of the shares after the stock market recovers.
The company noted that it would take "decisive steps" to deal with unsatisfactory margins in its connected-displays operation.
Philip's overall CE sales were $5.06 billion in the quarter, up from $4.73 billion the previous year, a gain of 10 percent. Sales growth was worldwide, except in North America.
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