Royal Philips 2Q Net Profit Rises; Begins EUR1.5 Billion Share Buyback Program
24 July 2017 - 3:57PM
Dow Jones News
By Razak Musah Baba
Netherlands' Royal Philips NV (PHIA.AE) said Monday it will
begin a 1.5 billion euros ($1.71 billion) share buyback program as
it posted a 36% rise in second-quarter net profit.
The health-technology company's net income from continuing
operations during the three months to the end of June rose to
EUR161 million from EUR118 million the year earlier, while sales
increased 4% to EUR4.3 billion from EUR4.13 billion during the
second quarter in 2016.
Adjusted earnings before interest and taxes or Ebit, the
company's preferred measure of its operational performance, rose
15% to EUR439 million during the quarter from EUR383 million a year
earlier, Philips said.
"Philips' performance in the second quarter of 2017 was solid,
with 4% comparable sales growth in our HealthTech portfolio driven
by Western Europe, North America and China, and a strong 8%
increase in our order intake. We achieved a 90-basis-point increase
in the Adjusted Ebita margin, driven by higher volumes, operational
improvements and cost productivity," Chief Executive Officer Frans
van Houten said.
"In line with our capital allocation policy, which aims at a
balanced mix of investments in organic and inorganic growth
opportunities, actions to drive balance sheet efficiency and
returns to shareholders, we also announced a new EUR1.5 billion
share buyback program to be launched in the third quarter of 2017,"
Mr. van Houten said.
The chief executive added that despite continued volatility in
the markets in which it operates, the company's outlook for 2017
remains unchanged. The chief executive said the company is on track
to deliver 4%-6% comparable sales growth and an improvement in
adjusted Ebita margin of around 100 basis points per year.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
July 24, 2017 01:42 ET (05:42 GMT)
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