By Lisa Johnston
New products on display at the American International Toy Fair, held in N
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.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.