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24 January 2011

Weak TV sales hit Philips


Gerard Kleisterlee_Philips

Philips reported fourth-quarter net profits of Euro 465 million (around £395m) and sales of Euro 7.4 billion but its consumer lifestyle division struggled.

Net profits were Euro 205m ahead of figures for the same quarter a year earlier but while total sales were two per cent up, like-for-like business actually fell by four per cent hit, said Philips, by weak TV sales and consumer caution.

In fact, like-for-lie business in the company’s Consumer Lifestyle operation (which covers consumer electronics and small appliances) dropped 11 per cent to Euro 2.7bn, or by six per cent when TVs are taken out of the picture.

“A weak television market, negative consumer sentiment in developed markets and inventory management in the trade which resulted in a particularly slow December,” hit fourth quarter business, said Philips president and chief executive Gerard Kleisterlee (pictured).

He added: “Television profitability, however, remained a major issue that we are committed to resolve.”