Tuesday, 22 January 2008

Philips Q4 Financials on Target with 2010 Vision

Philips posted its financial results for the fourth quarter with a net income amounting to 1,393 million Euros, a boost the electronics company credits to the EUR 1,087 million in gains on the sale of its stakes in LG Philips LCD and TSMC.

"I am pleased to report that in the fourth quarter Philips once again delivered on its targets. Q4’s 8% comparable sales growth and 10.3% EBITA margin brought our full-year numbers to 5% for growth and 7.7% for EBITA, meeting, respectively exceeding, our targets for the year thereby sustaining our track record of "saying what we do and doing what we say,” said Gerard Kleisterlee, President and CEO of Royal Philips Electronics.

“Operationally, we are well-positioned to achieve our Vision 2010 targets. Strategically, the acquisitions of Genlyte and Respironics, together with other important acquisitions of 2007 such as Partners in Lighting and Color Kinetics, will strengthen our portfolio by further building up global leadership positions in promising markets such as LED lighting and home healthcare.”

Philips said that 2007 saw a continued, investment in strengthening its position in important emerging markets in Asia, Eastern Europe and Latin America, with both China and India growing in excess of 20% in the fourth quarter.

“With our portfolio restructuring nearing completion, delivering on our 2007 objectives puts us in a good starting position to meet the more ambitious medium-term targets set as part of our Vision 2010 strategy, especially as this portfolio of activities has shown resilience in earlier periods of a deteriorating economy. I am confident that we will continue to deliver and that Philips is well geared to sustained profitable growth and increased shareholder value," added Kleisterlee.