From “RTTNews”:

Philips Electronics NV shares were down over 6% after reporting a decrease in fourth-quarter operating income due to weak sales. Net income, however, improved compared to last year’s loss, driven by lower tax charges. The company has halted ventilator and sleep apnea machine sales as part of a US consent decree with the DOJ. Philips will propose a 0.85 euro per share dividend for 2024 and expects 3-5% sales growth. The consent decree is being finalized and will be submitted to a US court for approval.

The company stated that the US consent decree provides clarity and a roadmap to restore the business, but restrictions will be placed on new CPAP or BiPAP sleep therapy device sales until requirements are met. Philips will continue to service existing devices and sell accessories, consumables, and parts inside and outside the US. It also plans to reduce its workforce by 8,000 roles, out of the total 10,000 planned by 2025.

Philips reported a fourth-quarter net income of 38 million euros, compared to a loss of 105 million euros the previous year. Earnings per share were 0.04 euro, an improvement from a loss of 0.11 euro a year ago. However, the results included charges of 363 million euros related to the consent decree, among other items.

Sales for the quarter amounted to 5.06 billion euros, a 7% decrease from last year. The Diagnosis & Treatment segment’s comparable sales increased by 5%, while Connected Care sales were flat and Personal Health sales increased by 7%. Shares in Amsterdam and on the NYSE saw a sharp drop. In Amsterdam, Philips shares were trading at 19.70 euros, down 6.39%, and in pre-market on the NYSE, shares were down around 7%.

In summary, Philips Electronics NV reported a fourth-quarter drop in income from operations, but an increase in net income compared to the previous year. The company has halted sales of certain medical devices in the US as part of a consent decree with the US Department of Justice. Looking ahead, Philips aims for 3-5% sales growth in 2024, along with cost reduction and workforce restructuring by 2025. Shares of Philips saw a significant drop following the news.



Read more: Philips Q4 Income From Opns Down; To Halt Sleep Devices Sale In US; Stock Dips