Royal Philips Electronics reported fourth-quarter net income of EUR 465 million (approx. US$645 million), an increase of EUR 205 million compared to 4Q 2009. EBITA (earnings before interest, tax, and amortization) was EUR 873 million at 11.8% of sales in the quarter. Sales were EUR 7.4 billion (approx. $10.2 billion), 2% higher than in 4Q 2009.
Philips, the Amsterdam-based maker of small appliances, consumer electronics, and healthcare devices, said comparable sales declined 4%, primarily reflecting weak consumer demand in Western Europe. Emerging market sales increased from 31% to 33% of group total sales.
Gerard Kleisterlee, president and CEO of Royal Philips Electronics, said a weak TV market contributed to weaker comparable sales in the fourth quarter.
"On the positive side, we continued to see good mid-single-digit comparable sales growth at Home Healthcare Solutions and Patient Care & Clinical Informatics in Healthcare," Kleisterlee said. "In Consumer Lifestyle, Personal Care and Health & Wellness posted strong high-single-digit growth."
Kleisterlee said sales rebounded strongly in the first half of 2010, helping push full-year sales to EUR 25.4 billion (approx. $35 billion), up 10% from 2009; on a comparable basis, growth was of almost 4.5% for the year.
“We finished a strong 2010 on a stable note with fourth-quarter EBITA of EUR 873 million, or 11.8% of sales, bringing EBITA for the full year to a record 10%," Kleisterlee said.
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