Philips' Second Quarter and Semi-Annual Results 2011
Jul 20, 2011
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Royal Philips Electronics of the Netherlands had comparable sales of EUR 5,213 million in the second quarter of 2011, up 4%, over 2Q 2010. Growth came from strong growth in Philips' Healthcare business and moderate growth in Lighting.
Consumer Lifestyle sector comparable sales were EUR 1338, compared to EUR 1293 in 2Q 2010 - down 2% compared to the same quarter in 2010. Growth in Personal Care, Health & Wellness, and Domestic Appliances sub-sectors was offset by a sales decline in Lifestyle Entertainment and Licenses.
Consumer Lifestyle results now exclude the television business. In March, Philips agreed to transfer its TV business to a joint venture 70% owned by TPV Technology and 30% owned by Philips.
Healthcare sector sales improved 8% on a comparable basis, driven by high single-digit growth in all businesses.
Lighting sector sales grew 4% on a comparable basis.
“Our second-quarter results were impacted by near-term operational challenges, weaker markets and a significant impairment charge," said Philips President and CEO Frans van Houten. "We are taking necessary steps to improve performance and we are confident in the prospects of our portfolio."
van Houten said the company launched a comprehensive performance improvement program called "Accelerate!" It includes a cost reduction program designed to cut EUR 500 million from Philips' operating model.
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