Philips reports earnings drop as sales slow

Philips reported a mixed set of results today with third-quarter earnings falling by 15%.

While revenues declined slightly over the quarter, the company left its guidance for the year unchanged.

Slowing momentum

Third-quarter net profit fell to €315m versus €370m in the same period of 2016, which Philips said was mainly due to the sell-down of its interest in Philips Lighting.

Revenues declined to €4.15bn compared with last year´s €4.16bn, as comparable sales growth dipped to 4% versus 5% in the year-ago period.

The best sales performance came from its connected care & health informatics business while the diagnosis & treatment business lagged on this measure.

Europe stumbles

Results across developed markets trailed the performance of the emerging segments.

Comparable sales declined by 6% in Western Europe and were flat in North America, while the same gauge across so-called growth geographies, including the likes of China, India and Latin America, was up 15%.