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Philips reports falling sales, more net income in Q2 2016

Xinhua, July 25, 2016 Adjust font size:

In the second quarter of 2016, Philips recorded a slight decrease of sales and an increase of net income, the Dutch electronics company announced on Monday.

Sales of Philips amounted to 5.861 billion euros (6.428 billion U.S. dollars) in Q2 2016, compared to 5.974 billion euros in the same quarter one year ago.

Net income rose to 431 million euros in the second quarter, compared to 274 million euros in Q2 of 2015. The net income rise was including a 144 million-euro award from the Funai arbitration, after a deal with Funai Electric in 2013 had been terminated by Philips for breach of contract by the Japan-based company.

"Philips' performance in the second quarter of 2016 was solid, with 3 percent comparable sales growth overall and strong 5 percent growth from our HealthTech businesses," commented CEO Frans van Houten in a press release.

"Our transformation program delivered further operational improvements across most businesses, while we continued to invest in quality and innovation," he added.

After Philips announced to split the company into two, separating the lighting business from the healthcare and consumer lifestyle divisions, Philips Lighting was listed and started trading on Euronext in Amsterdam in May this year.

"With that momentous step, Philips will now fully focus on capturing the exciting opportunities in the health technology space, allowing Philips Lighting to do the same in the growing market for energy-efficient lighting," Van Houten said. "Philips currently retains a majority holding in Philips Lighting with the aim of fully selling down over the next several years."

"Our outlook for 2016 remains unchanged, as we continue to expect earnings improvements in the second half of the year, but we are concerned about increased risk due to volatility in a number of markets," he added. (1 euro = 1.10 U.S. dollars) Endit