Philips Books EUR250 Million Provision Against Faulty Product; 1Q Net Profit Was Up Slightly
April 26 2021 - 1:51AM
Dow Jones News
By Ian Walker
Koninklijke Philips NV said Monday that it has booked a 250
million euro ($302.5 million) provision in its accounts after
finding a quality issue with a component used in some sleep and
respiratory-care products, as it booked a slight rise in
first-quarter net profit.
Despite the provision, the Dutch health-technology company
raised its forecast for the year. It now expects to deliver
low-to-mid-single-digit comparable sales growth for 2021, up from
low-single-digit growth previously indicated. The company still
expects to report adjusted earnings before interest, taxes and
amortization margin improvement of 60-80 basis points.
Philips made a net profit attributable to shareholders of EUR39
million for the quarter ended March 31 compared with EUR38 million
for the same period last year.
Quarterly sales rose to EUR3.83 billion from EUR3.69 billion,
beating analysts' expectations for EUR3.72 billion taken from the
company's website. On a comparable basis, sales grew 9%, ahead of
company-provided consensus estimates of 6.3%.
Adjusted Ebita--a metric that strips out exceptional and other
one-off items--was EUR362 million compared with EUR208 million and
a company-compiled consensus of EUR326 million, Philips said.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
April 26, 2021 01:36 ET (05:36 GMT)
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