Philips shares tumble after earnings drop
Tuesday 22 April 2014
Philips shares fell more than 7 per cent after the world's largest lighting company said weaker business in emerging markets and a strong euro hurt profits in the first quarter.
It reported earnings down 22 per cent to €314 million for the period – below analyst estimates and group sales fell 4.5 per cent.
Net profit for the quarter of €137 million was 15 per cent below its 2013 first quarter profit figure.
The 123-year old Dutch group, which has been focusing on growing its healthcare and LED lighting businesses, has been particularly hit by the strength of the euro against other currencies and slowing demand for its medical equipment in Russia and China.
The group has been in turnaround mode since chief executive Frans van Houten took over in April 2011. He has cut costs and streamlined its business model.
Last year it sold its home entertainment business to Japan’s Funai Electric, which will make the products under licence, and previously it sold its TV arm.
Instead Philips has focused on growing its healthcare division which includes medical equipment for radiology, cardiology, oncology specialists.
Van Houten said the first quarter results “reflect a challenging start to the year” but he said he is “confident” it will meet its 2016 targets.
Since van Houten joined, its shares have been recovering and rose nearly 80 per cent over two years. But today they slipped 7 per cent — the biggest drop since June 2011.
- 1 Heavy metal producer's corpse to be mutilated by models as per his dying wish
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 Nineteen-year-old student left gifts for parents before taking her own life
- 4 Deliberately urinating before sex can increase risk of urinary tract infections
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
'Je suis Muslim': Hundreds rally in Australia over portrayal of Islam and Prophet Mohamed
AirAsia QZ8501: Black box reveals warning alarms 'screamed' before crash, as more bodies recovered from near fuselage of jet
Nineteen-year-old student left gifts for parents before taking her own life
Isis Japanese hostages: Video purports to show Haruna Yukawa executed and second hostage Kenji Goto with new terms for release
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
David Cameron says anyone criticising Eric Pickles' letter to Muslims 'really has a problem'
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...