Philips Q4 profit dips on one-off charges

Dutch electronics giant Philips reported a drop in fourth-quarter profit due to one-off charges.

Dutch electronics giant Koninklijke Philips Electronics reported Monday a drop in fourth-quarter profit due to one-off charges.

Net income in the fourth quarter fell to Euro 332 million ($AU521.7 million on Dec. 31, the last day in the period being reported) from Euro 498 million in the same period the year before, in accordance with U.S. generally accepted accounting principles (GAAP), the Amsterdam manufacturer said in a statement.

One-off charges included Euro 458 million in costs related to LG Philips LCD Co. and a Euro 240 million tax payment linked to transferring its stake in contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC).

Fourth-quarter sales rose 6 percent to Euro 9.52 billion from Euro 8.95 billion a year earlier. The group's medical systems, semiconductor and consumer electronics divisions contributed to the comparable sales growth.

At the semiconductor unit, fourth-quarter sales rose 9 percent to Euro 1.33 billion from Euro 1.12 billion the year before.

In December, Philips announced plans to separate its chip manufacturing operations, in a move that could see the unit merge with a rival.

Sales in the Dutch manufacturer's core consumer electronics business grew 6 percent to Euro 3.47 billion in the fourth quarter from Euro 3.34 billion the year before. The unit benefited, in particular, from strong demand for flat displays.

In 2005, Philips posted net income of Euro 2.87 billion, compared to Euro 2.84 billion the year before. Full-year sales grew 4 percent to Euro 30.4 billion from Euro 29.35 billion a year earlier.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Blau

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?