Monday, 20 October 2014 - 09:27
Philips announces €100 million loss
Philips suffered a 103 million euro loss in the third quarter. The electronics company recently received a patent fine and suffered from difficult market conditions in countries such as China and Russia. CEO Frans van Houten is dissatisfied with the results in the third quarter. According to Van Houten, the demand in China slowed "quite dramatically". The company has since suffered from the slowdown in economic growth and slowdown in the construction sector. In addition the stricter tender rules, designed to fight corruption, led to restraint in the market. Van Houten expects the situation in China to "gradually" improve in 2015. Philips was also affected by the major economic slowdown in Russia. The Russian economy was hit hard by the turmoil caused by the conflict with Ukraine and the penalties introduced against the country. The American court recently required Philips to pay $466 million in damages to American company Masimo, for violating patents in medical technology. Philips will appeal against the fine.