Philips quarterly profit hits €915m

Royal Philips, based in Amsterdam, reported fourth-quarter 2013 earnings before interest, taxes, amortization and one-time items of €915 million, up 20% from €765 million in the fourth quarter of 2012. In fourth-quarter, the company’s net profit was €412 million, compared with a net loss of €420 million in 2012 quarter. Philips’s sales rose 1% to €6.8 billion in fourth-quarter. Comparable sales at both Consumer Lifestyle and Lighting divisions grew 8%, while Healthcare revenue increased 4%, Bloomberg News reported. The Amsterdam-based company faces the challenge of improving profit at a time when consolidation in the U.S. health-care market continues to delay orders and European hospitals and clinics tighten budgets. The company is gaining traction in China, where sales of appliances such as air purifiers and rice cookers exceeded company predictions, according to Bloomberg. Philips is putting more focus on profitable businesses such as LED lighting, health-care equipment and wellness offerings. The company is also trying to sell the DVD and multimedia divisions that are the heritage of the 123-year-old company.