Philips Q4 weighed down by price fixing fine

THE HAGUE, Jan. 29 (Xinhua) -- Dutch electronics company Royal Dutch Philips saw its fourth quarter operational results improve by 50 percent to 875 million euros (1,117 million U.S. dollars), the company announced in a press meeting Tuesday.

Despite the fine given by the European Commission of 509 million euros (684 U.S. dollars), Philips' net income amounted to 154 million euros, providing growth in all sectors.

The fine, levied in December against Philips, LG Electronics, Panasonic and others, came after regulators concluded that the companies engaged in price fixing in the television market over two decades. Philips is fighting the fine.

Philips also announced it signed a deal to transfers its audio, video, multimedia and accessories business to Japan's Electric Co.

Japan's Funai Electric Co. will pay 150 million euros in cash and a license fee for the Lifestyle Entertainment unit, Amsterdam-based Philips said. With this step the company puts its focus more on its healthcare, lighting and consumer lifestyle sector.

Philips' healthcare sector sales grew with 4 per cent to 2.9 million euros, while Consumer Lifestyle sales grew with 2 per cent to 1.9 million euros. Lighting saw a total sales growth of 2,3 million euros, an increase of 4 per cent.

"We are pleased with the continued improvements of our operational performance in the fourth quarter. Through our Accelerate! Program, we are making good progress in transforming Philips into an agile and entrepreneurial company, driving improved and sustainable results," CEO Frans van Houten said in a statement.

"Our growth initiatives are working, as we increased sales despite the challenging economic environment in western economies. Our operational results improved across all sectors, as a result of increased sales, overhead cost reductions, and gross margin expansion," he added.

Sales for 2013 are expected to start slow and then pick up in the second half of the year. The company said it was confident it would achieve its 2013 financial targets.

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