Philips' Third Quarter Results 2010


Philips reports third-quarter net income of EUR 524 million, EBITA of EUR 648 million and sales of EUR 6.2 billion

October 18, 2010

• Net income of EUR 524 million, including a gain of EUR 154 million on the sale of NXP shares
• EBITA of EUR 648 million, or 10.5% of sales, up from 6.1% last year
• Sales up 10% nominally and 1% comparably year-on-year
• Emerging markets sales up 19% nominally and 7% comparably year-on-year
• Healthcare order intake growth of 7%, including 20% growth in emerging markets
• Growth at Lighting and Healthcare tempered by Consumer Lifestyle

 

Gerard Kleisterlee, President and CEO of Royal Philips Electronics:

 

“The third quarter was another solid quarter for Philips, resulting in net income of EUR 524 million and adjusted EBITA of 10.6%. This has led to an adjusted EBITA in the first nine months of 2010 of 10.1%, exceeding our target for the year and putting us in an excellent position to deliver on one of the main targets of our Vision 2010 strategic plan.

 

In a still fragile economic environment, with weak consumer markets in the developed economies, we posted sales growth of 10% nominal and 1% on a comparable basis.

 

Looking at the performance of our three sectors, both Healthcare and Lighting delivered a good quarter in terms of profitability as well as growth. Consumer Lifestyle improved profitability despite weak demand in some of its markets, with strong sales at Health & Wellness, Personal Care and Domestic Appliances weighed down by lower sales in the rest of the sector.

 

We also continued on our growth path in emerging markets, with 19% nominal and 7% comparable sales growth. This means that we now generate more than one-third of our sales in these markets.

 

Our continued progress in the third quarter confirmed that we are on the right track to become a leading company in health and well-being as outlined in our strategic plan, Vision 2015.”

 

 

 

 

 

Quarterly Report

Q3 2010 - Third Quarter Report 


Presentation 

Q3 2010 - Third Quarter Results Presentation 

 

Conference call and audio webcast 

A conference call with Pierre-Jean Sivignon, CFO, to discuss the results, will start at 10:00AM CET. A live audio webcast of the conference call will be available through the link below.

Q3 2010 conference call audio webcast 

 

More information about Pierre-Jean Sivignon
Click here for Mr. Sivignon's CV and images 

Acquisitions of Wheb Sistemas and CDP Medical Ltd

 Philips strengthened its clinical informatics portfolio with the acquisitions of Wheb Sistemas, a leading Brazilian provider of clinical information systems, and CDP Medical Ltd, an Israel-based provider of Picture Archiving and Communication Systems (PACS).

Introducing IntelliVue MX800 patient monitoring system

 Philips introduced the IntelliVue MX800 patient monitoring system, a new dimension in patient care that provides immediate access to comprehensive patient information directly at the monitor.

Acquisition of Discus Holdings Inc.

 Philips agreed to acquire Discus Holdings Inc., the leading manufacturer of professional tooth whitening products. The acquisition broadens Philips’ oral healthcare portfolio and provides a strong foundation for growth in cosmetic dentistry.

EISA awards

 Philips won four European Imaging & Sound Association (EISA) awards this year, including the ‘European Green TV 2010-2011’ for the Econova for significantly lower energy consumption and a body largely made from recycled material.

Lighting solutions acquired from Amplex

Madrid municipality has chosen Philips Lighting Control Systems to manage more than 200,000 street light-points through 1,400 cabinets all around the city, thanks to the expanded solution acquired from Amplex.

DayLight car lighting solutions

Ahead of EU legislation stipulating that all new car models must be equipped with daytime running lights, Philips has introduced its LED-based DayLight car lamp range that could reduce the number of fatalities resulting from traffic accidents by enhancing cars’ visibility to pedestrians and other motorists.

iF Design awards

Philips won eight awards at the iF design awards in China, for its LED lighting and consumer lifestyle solutions, in addition to four awards at ‘2010 China’s Most Successful Design Awards’, also for its consumer lifestyle products.

For further information, please contact:

Joon Knapen
Philips Corporate Communications
Tel:  +31 20 59 77477
Email:  joon.knapen@philips.com

 

Joost Akkermans

Philips Corporate Communications

Tel: +31 20 59 77406

Email: joost.akkermans@philips.com 

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About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs more than 118,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter. 

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Forward-looking statements

This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, in particular the sections "Looking ahead" and "Outlook". Examples of forward-looking statements include statements made about our strategy,estimates of sales growth, future EBITA and future developments in our organic business. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements. These factors include but are not limited to domestic and global economic and business conditions, the successful implementation of our strategy and our ability to realize the benefits of this strategy, our ability to develop and market new products,changes in legislation, legal claims, changes in exchange and interest rates, changes in tax rates, pension costs and actuarial assumptions, raw materials and employee costs, our ability to identify and complete successful acquisitions and to integrate those acquisitions into our business, our ability to successfully exit certain businesses or restructure our operations, the rate of technological changes, political, economic and other developments in countries where Philips operates, industry consolidation and competition. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see the Risk management chapter included in our Annual Report 2009 and the "Risk and uncertainties" section in our semi-annual financial report for thesix months ended July 4, 2010.

 

Third-party market share data
Statements regarding market share, including those regarding Philips’ competitive position, contained in this document are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.

 

Use of non-GAAP information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used in conjunction with the most directly comparable IFRS measures. A reconciliation of such measures to the most directly comparable IFRS measures is contained in this document. Further information on non-GAAP measures can be found in our Annual Report 2009.

 

Use of fair-value measurements
In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable. Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When quoted prices or observable market data do not exist, we estimated the fair values using appropriate valuation models and unobservable inputs. They require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments. Critical assumptions used are disclosed in our 2009 financial statements. Independent valuations may have been obtained to support management’s determination of fair values.

 

All amounts in millions of euros unless otherwise stated; data included are unaudited. Financial reporting is in accordance with IFRS, unless otherwise stated. This document comprises regulated information within the meaning of the Dutch Financial Markets Supervision Act ‘Wet op het Financieel Toezicht’.

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