Philips Electronics reports profit in Q4
AMSTERDAM (AP) – Royal Philips Electronics reported a net profit of euro251 million ($355 million) for the fourth quarter on Monday, helped by lower one-time charges and by job cuts.
The net profit reverses a loss of euro1.18 billion in the same period a year ago, which included euro629 million in impairment charges on assets. Fourth quarter sales fell 4.7 percent to euro7.26 billion, though Philips said that was mostly due to currency effects.
Philips has shed 5,474 jobs in the past year and now employs around 116,000.
CEO Gerard Kleisterlee said operating profit margins, excluding restructuring charges, were above 12 percent, their highest level in a decade.
Shares rose 4.7 percent in early Amsterdam trading to euro21.285.
The results "were better than expected on most counts," analyst Eric de Graaf of Petercam Bank wrote in a note on the earnings.
At Philips' consumer products division, operating earnings were euro260 million versus a loss of euro40 million. That's mostly due to a turnaround at its television unit, which accounts for more than a third of division sales.