Philips reports profit drop; pledges earnings will improve in second half

|By:, SA News Editor

Philips (NYSE:PHG) reports that Q2 net profit fell 23% due to unfavorable exchange rates and the suspension of its health care plant in Cleveland, but countered that earnings should increase in the second half of the year compared with the same period last year. Net profit fell to €242M vs. €317 a year earlier.

Sales fell 6% Y/Y to €5.29B. Sales were flat on an annual basis, with 7% growth at Philips's consumer electronics business, 1% sales growth in the lighting business and a 3% drop in sales at its health-care business.

EBITA dropped to €415M, down from €601M Y/Y.

PHG -0.9% premarket