© beisea dreamstime.com Electronics Production | January 30, 2013
Philips with EUR 355 million loss in 4Q
Net income for electronics giant Royal Philips amounted to a net loss of EUR 355 million, which represents a year-on-year decline of EUR 195 million.
The loss reflects the EUR 509 million impact of the European Commission fine related to alleged violation of competition rules in the Cathode-Ray Tubes (CRT) industry, while Q4 2011 included a EUR 128 million value adjustment of commercial and brand- related assets at Lighting. Excluding the European Commission fine and the value adjustment in 2011, net income amounted to EUR 154 million, compared to a EUR 32 million loss in Q4 2011. EBITA excluding restructuring and other charges amounted to EUR 875 million, or 12.2% of sales, an increase of 50% compared to Q4 2011. Restructuring and acquisition-related charges amounted to EUR 358 million. Other charges include EUR 313 million for the European Commission fine, and EUR 154 million related to various legal matters as well as a loss on the sale of industrial assets. As a result of these charges, EBITA was EUR 50 million, which is EUR 453 million lower than the prior year’s EUR 503 million. Results from investments in associates was a loss of EUR 193 million, including a charge of EUR 196 million corresponding to Philips’ portion of the European Commission CRT-related fine with respect to the former LG.Philips Displays joint venture. The after-tax loss from discontinued operations of EUR 5 million is EUR 267 million lower than in Q4 2011 and represents the results of the Television business. Group sales amounted to EUR 7,161 million, an increase of 3% on a comparable basis. Group nominal sales increased by 7%, including a 4% positive impact of currency and portfolio changes.