Philips enjoyed strong 4Q13 due to LED-based sales
Philips has revealed that its 4Q13 earnings before interest, tax and amortisation (EBITA) reached about $1,192 million, or 13 percent of sales, compared to a loss of roughly $67 million in 4Q12. LED-based sales propelled the company in 4Q13 seeing growth of 48 percent.
Lighting comparable sales increased by eight percent, led by double-digit growth at lumileds and automotive. Light sources & electronics and professional lighting solutions achieved mid-single-digit growth, while consumer luminaires recorded a low-single-digit decline.
LED-based sales now represent 34 percent of Phlips' total lighting sales.
Philips CEO Frans van Houten, said: "The 4Q13 was another good quarter for Philips, despite the challenging economic environment and ongoing currency headwinds. In the quarter, lighting and consumer lifestyle both delivered strong comparable sales growth of eight percent. At healthcare, comparable sales increased by four percent, while order intake declined one percent as a result of weak markets in US and Europe. The operational profitability of all sectors improved substantially, driven by good sales growth, gross margin expansion of two percentage points and the productivity gains, all coming from the Accelerate! Program."
In growth geographies, comparable sales showed a double-digit increase. EBITA margin excluding restructuring and acquisition-related charges and other losses was 10.4 percent, a YoY improvement of 2.5 percentage points.
- Paul Buckley
EE Times Europe
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