PresseBox
Pressemitteilung BoxID: 232965 (Philips Deutschland GmbH)
  • Philips Deutschland GmbH
  • Lübeckertordamm 5
  • 20099 Hamburg
  • http://www.philips.de
  • Ansprechpartner
  • Klaus Petri
  • +49 (40) 289921-95

Philips reports Q4 sales of Eur 7.6 billion

Ebita of Eur 141 Million includes Eur 390 Million of restructuring and acquisition-related charges

(PresseBox) (Hamburg , ) .
- Healthcare showed strong Q4 sales growth of 9% and improved earnings; lower sales at Consumer Lifestyle and parts of Lighting reflect the challenging retail and automotive markets
- Rigorous management of working capital secured strong cash flow; production stops to manage inventory impacted EBITA by EUR 60 million
- Net quarterly loss of EUR 1.5 billion includes EUR 1.3 billion of non-cash value adjustments and EUR 150 million of year-end tax adjustments
- Proposal to distribute EUR 0.70 per share for 2008
- Full-year sales of EUR 26.4 billion delivered EBITA of EUR 931 million

Gerard Kleisterlee, President and CEO of Royal Philips Electronics:

"While we are very pleased with the excellent performance of Healthcare, our fourth-quarter results are a reflection of both the severe impact of the global financial and economic crisis and the decisive actions taken by management. The effects of the steep downturn have led not only to value adjustments of our remaining financial holdings and the impairment of goodwill at Lumileds, but also to a sharp reduction in demand, especially in Consumer Lifestyle and in our OEM businesses in Lighting, compounded by de-stocking in the whole supply chain. In response, management has given absolute priority to cash flow, where necessary at the expense of EBITA, and to the acceleration of our restructuring and change programs. We expect these programs to deliver benefits of approximately EUR 400 million on an annualized run rate, taking effect in the second half of 2009. We have sustained our spending levels on R&D and marketing as innovation is now more crucial than ever.

The increased strength of our business portfolio was particularly evident in Healthcare in the fourth quarter, where we grew sales by 9% comparably and continued to gain market share, while EBITA was a solid 14.2%. Excluding the 3.5% reduction from restructuring and acquisition-related charges, EBITA was 17.7%, with a continued strong contribution from the former Respironics business.

At Lighting, our Professional Luminaires business maintained moderate comparable growth in a declining market, while in our Lamps operations we focused on drastically reducing inventory and production. I am confident the significant restructuring programs we pulled forward in response to the rapid deterioration of the economy towards the end of 2008 will enable us to improve the competitiveness of this sector as well, despite the clear challenges ahead, particularly in the automotive and construction sectors.

In Consumer Lifestyle, we continued to optimize our portfolio by focusing on differentiating, profitable businesses. The choices we made are certainly reflected in the top-line result in this sector. While EBITA came under severe pressure in the fourth quarter, we are creating a much stronger sector for the future, ready to benefit when consumer spending recovers to normal levels.

The development of our quarterly results reflects the unprecedented speed and ferocity with which the economy softened in 2008. This prevents us from looking too far into the future. However, I am confident that the overall strength of our business portfolio, the proactive measures we have taken to manage the impact of the downturn and our strong focus on working capital management will carry us successfully through this economic downturn, making us stronger and well-positioned to succeed in building Philips into the leading brand in Health & Well-being."