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Philips reports rise of sales, decline of net income

Xinhua, April 29, 2015 Adjust font size:

Philips registered an increase of sales in the first quarter of 2015, but a decrease of EBITA and net income, the Dutch electronics giant announced on Tuesday.

Comparable sales reached 5.339 billion euros in the first quarter of the year, compared to 4.692 billion euros in the same period one year ago.

"We are encouraged by the resumption of sales growth in the first quarter of 2015, which was driven by continued strong performance in Consumer Lifestyle and positive comparable sales growth in Healthcare," CEO Frans van Houten said in a press release.

EBITA was 230 million euros in the Q1 of 2015, compared to 253 million euros in 2014, while the net income came out on 100 million euros in the first three months of the year compared to 137 million euros in 2014.

The income decrease was according to Philips mainly due to lower earnings as a result of higher restructuring and acquisition-related charges and investments, coupled with negative currency effects.

EBITA, excluding restructuring and acquisition-related charges and other items, was 327 million euros in Q1 of 2015, compared to 304 million euros in Q1 of 2014.

In September last year, Philips decided to split into two separate independent companies, one for lighting solutions and one combining health care and consumer lifestyle. This separation is still in progress.

"We are making good progress in setting up two stand-alone, fit-for-purpose companies," CEO Van Houten said. "We are also working on defining the optimal infrastructure and right perimeter for each business, including tax and legal structures, real estate footprint and IT systems."

The transition of the Lighting business into a separate legal structure will take at least until the end of 2015, in order to be ready for the separation, which is currently intended to be effectuated through an IPO in the first half of 2016. The company continues to estimate that separation costs will be in the range of 300 to 400 million euros in 2015. Endit