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Philips posts loss due to weak European demand

Dutch group Philips Electronics has reported a 160m euro ($210m; £134m) net loss for the fourth quarter of 2011.

The result compared with a 465m euro profit a year earlier.

The firm, which is in the process of pulling out of its TV business, blamed weak European sales and delivery delays in its healthcare sector.

It also said it had to take charges relating to stock it could not sell and other operating issues in its lighting division.

Total group sales, however, rose 3% to 6.7bn euros.

The company had warned earlier this month that its fourth-quarter results would be disappointing.
Cautious

For the whole of 2011, the group made a loss of 1.29bn euros, compared with a profit of 1.45bn euros in 2010.

It was Philips' first annual loss since 2008.

"We are cautious about 2012 given the uncertainty in the global economy, and Europe in particular," said chief executive Frans van Houten.

Mr van Houten took the helm at Philips in April and has since issued three profit warnings.

BBC News

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