Amsterdam – Philips reported higher fourth quarter sales for consumer electronics and corporately during the fourth quarter.
Comp sales increased by 8 percent to $12.1 billion, driven by strong growth in lighting and the consumer businesses, particularly in emerging markets, where sales growth was 18 percent.
Net income amounted to $2.02 billion, up from $987.5 million in the prior year’s quarter, Philips reported. The increase in earnings was boosted by $1.58 billion in gains on the sale of stakes in LG.Philips LCD and TSMC.
EBITA as a percentage of sales grew by 1.1 percentage points compared to 2006’s fourth quarter to reach 10.3 percent, or $1.26 billion.
In consumer electronics, sales were $5.06 billion in the fourth quarter, up from $4.73 billion in the previous year, a year on year gain of 10 percent. Growth was “visible across all operating business and all regions except North America,” the company said. Sales in emerging markets, which represent about one-third of total divisional sales, grew at 17 percent.
The company noted it would take “decisive steps” to deal with unsatisfactory margins in Connected Displays.
Following the Sept. 2007 Vision 2020 announcement, the former Consumer Electronics, Domestic Appliances and Personal Care division have been integrated in the Consumer Lifestyle group as of Jan. 1.