Dutch consumer electronics giant Philips Electronics NV (PHGFF.PK,PHG) reported that its fourth-quarter net income attributable to shareholders declined to 556 million euros or 0.62 euros per share from last year's 673 million euros or 0.72 euros per share, mainly due to higher income tax expense and charges of 32 million euros related to an impairment of goodwill and acquired intangible assets, partly offset by lower charges related to discontinued operations.
The company said it will start the process of creating a separate legal structure for its Domestic Appliances business, within the Group. It is expected to be completed in 12 to 18 months.
Looking ahead at 2020, the company continues to see geopolitical and economic risks. It aims for 4-6% comparable sales growth and an Adjusted EBITA margin improvement of around 100 basis points, with a performance momentum that is expected to improve in the course of the year.
Adjusted earnings per share from continuing operations for the fourth-quarter increased 9% to 0.83 euros from last year.
Philips's sales for the fourth quarter were 5.96 billion euros, up from 5.59 billion euros in the prior year, with 3% comparable sales growth.
The company appointed Roy Jakobs, currently Chief Business Leader of the Personal Health businesses, as the new Chief Business Leader of the Connected Care businesses with immediate effect. He succeeds Carla Kriwet, who will leave the company.
A successor for the Personal Health Chief Business Leader role will be announced in due course. Philips CEO Frans van Houten will lead the Personal Health businesses on an interim basis.
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