The FINANCIAL — Group Financials have been restated as of the fourth quarter of 2014 and for prior periods to show the results of the combined businesses of Lumileds and Automotive as discontinued operations in connection with the process of attracting third-party investors, according to Koninklijke Philips N.V.
Fourth-quarter highlights
• Comparable sales declined 2%
• EBITA, excluding restructuring and acquisition-related charges and other items, amounted to EUR 743 million, or 11.4% of sales, compared to 12.9% in Q4 2013
• EBITA amounted to EUR 262 million, impacted by restructuring costs and other items, compared to EUR 789 million in Q4 2013
• Net income amounted to EUR 134 million, compared to EUR 412 million in Q4 2013
• Free cash flow improved to EUR 559 million, compared to EUR 481 million in Q4 2013
Full-year highlights
• Comparable sales declined 1% to EUR 21.4 billion
• EBITA, excluding restructuring and acquisition-related charges and other items, amounted to EUR 1.9 billion, or 9.0% of sales, compared to EUR 2.3 billion, or 10.5% of sales, in 2013
• EBITA amounted to EUR 821 million, or 3.8% of sales, compared to EUR 2.3 billion, or 10.4% of sales, in 2013
• Net income amounted to EUR 411 million, compared to EUR 1.2 billion in 2013
• Free cash flow improved to EUR 497 million, compared to EUR 82 million in 2013
• Return on invested capital was 4.5%, compared to 13.9% in 2013
• Proposal to maintain dividend at EUR 0.80 per share
“The fourth quarter underscored a challenging 2014 for Philips. Our transformation efforts continued to show good results, even as we addressed performance issues, ongoing softness in end-markets like China and Russia, and stronger than anticipated foreign exchange impacts, particularly in emerging markets,” Frans van Houten, CEO said.
“Healthcare was down overall, mainly caused by operational issues and soft markets. We were encouraged by market share gains in image-guided therapy and recorded strong orders in Europe and the Middle East, where we signed four multi-year solution deals. Our Cleveland factory resumed shipments to customers in January, marking an important milestone. Consumer Lifestyle performed very well in the quarter, continuing its three-year market-outperformance trend. Our Health & Wellness business delivered double-digit growth and we saw overall strong growth in EBITA.
Lighting recorded 20% sales growth in LED and expanded its margins in LED despite strong price erosion. Performance was, however, negatively impacted by results in China, Professional Lighting Solutions North America and conventional lighting. We took action to further restructure our manufacturing footprint in conventional lighting,” he added.
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