Philips announces Q4 Results
Philips has released its official 2011 fourth quarter results, showing a sales increase of 3 per cent, thanks to a 7 per cent growth in its lighting arm.
Philips noted that overall results were impacted by weaknesses in the European markets and the postponed deliveries of existing orders. It also cited increased investments in new product innovation and sales channels, as having an effect.
The year-on-year comparable sales increase seen in the lighting business was reportedly driven by a double-digit sales growth at Lamps and Automotive. Furthermore, there was a 37 per cent comparable growth in LED-based sales, which now represents 18 per cent of aggregate lighting sales. The quarter also saw an increase of 21 per cent in growth regions.
EBITA, excluding restructuring and acquisition-related charges of EUR 36 million, was 3.7 per cent of sales, an 8 per cent drop from Q4 2010. Pricing, inventory reduction measures and operational issues, were all said to have affected these results.
With many Consumer Luminaire products being re-branded as Philips products as part of a ‘turnaround plan’, value adjustments of commercial and brand-related assets were made, resulting in a charge of nearly £110 million.
However, January 9, 2012, saw Philips complete the purchase of all Indal Group’s outstanding shares. The company hopes that the acquisition of the Spanish luminaires company will help strengthen its position in the European lighting solutions market.
The company said its ‘Accelerate’ change and performance program, is showing signs of having a positive impact on sales growth in difficult market circumstances.
“We are cautious about 2012 given the uncertainty in the global economy, and Europe in particular. In addition, we expect our 2012 results to be affected by the previously communicated restructuring charges and one-time investments aimed at improving our business performance trajectory, as part of the multi-year Accelerate Program,” said Frans van Houten, CEO.
“Excluding these additional charges, we expect the underlying operating margins and capital efficiency in the sectors to improve in the latter part of 2012.”
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