Philips Shares Drop After Q3 Results

Loading...
Loading...
Royal Philips NV
PHG
posted a net loss in the third quarter. Philips swung to a quarterly net loss of EUR104 million ($132 million), versus a year-ago net profit of EUR282 million. The latest quarter results included charges of EUR 366 million related to the jury verdict in the Masimo litigation Its sales declined 0.9% to EUR5.55 billion from EUR5.6 billion. Healthcare comparable sales rose 1% y/y, while consumer lifestyle comparable sales gained 5%. Lighting comparable sales fell 1% y/y, while LED-based sales surged 28%. Philips' earnings before interest, taxes, amortisation and one-time items fell 16% to 536 million euros ($684 million). Operating margins, before charges, narrowed to 9.7% from 11.4% of sales. The number of employees rose by 1,590 y/y. Frans van Houten, CEO, said, “As we manage through a challenging 2014 and given a number of incidentals, we are not satisfied with our overall performance in the third quarter. We are facing sustained softness in a number of markets such as China and Russia. We were also confronted by an adverse jury verdict with a surprisingly high proposed award in the Masimo litigation, which we will appeal. On a positive note, production at our Cleveland facility is ramping up.” Philips shares dropped 3.60% to $27.06 in pre-market trading.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsloss
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...