PHIA Koninklijke Philips NV

By Anthony O. Goriainoff

Koninklijke Philips N.V. said Monday that its first-quarter net income fell due to the coronavirus pandemic and that the board's 2019 annual incentive will be paid in shares.

The Dutch technology company said net income for the quarter ended March 31 fell to 39 million euros ($42.4 million) compared with EUR162 million in the year-earlier period.

Income from continuing operations--an important metric for Philips--fell to EUR42 million from EUR171 million in the first quarter of 2018.

The company said first-quarter procurement savings amounted to EUR36 million.

Sales for the quarter fell to EUR4.15 billion from EUR4.16 billion, Philips said. Comparable sales fell 2%.

Philips reported that the margin on its adjusted earnings before interest, taxes and amortization fell to 5.9% of sales, compared with 8.8% of sales in the year-earlier period.

The company said that the virus is expected to affect all geographies in the second quarter and that it sees a modest return to profitability in the second half.

"This is expected to result in a steep revenue decline for our Personal Health businesses and a sizable high-single-digit decline for our Diagnosis & Treatment businesses, partly offset by a significant increase in revenue of our Connected Care businesses," the company said.

The company said it aims to achieve a modest comparable sales growth and adjusted Ebita margin improvement for 2020, and that given the current situation it won't provide more specific guidance.

The board said that its proposed dividend will be distributed in shares only, instead of the currently proposed distribution in cash or in shares at the option of shareholders.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

April 20, 2020 01:51 ET (05:51 GMT)

Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Mar 2024 to Apr 2024

Koninklijke Philips NV (EU:PHIA)
Historical Stock Chart
From Apr 2023 to Apr 2024