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1/24/2017, 9:21 AM (Source: TeleTrader)
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Philips dips with looming settlement costs in US

Amsterdam-based Koninklijke Philips NV said its earnings before interest, taxes and amortisation (EBITA) in the past quarter rallied 18.8% on the year to €1 billion, alongside a rise in sales by 3% to €7.24 billion, led by healthcare equipment. The results, reported on Tuesday, include growth in the personal health business by 7%, mostly due to improvements in the health and wellness segment and domestic appliances. Net income came in at €640 million, against a €39 million net loss one year before.

"We entered into 15 new multi-year contracts with an aggregate value of approximately €900 million. I see many more opportunities for Philips to grow by leveraging our deep clinical and consumer insights to deliver innovative healthcare solutions to our customers," company head Frans van Houten said.

He revealed the external defibrillator dispute for the period through 2015 is being discussed with the United States Department of Justice, with expected substantial impact on operations. A quality control issue led production at a facility in Cleveland to a halt in 2014. Van Houten also cited "elevated uncertainty" in the company's markets. Investors sent shares 3.82% down to €26.81 in Amsterdam in the first few minutes of trading.

The Dutch engineering and consumer appliances conglomerate also known as Royal Philips stuck with target sales growth between 4% and 6% for this year. 

Breaking the News / IT