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Philips Q3 Net Profit Surges, EBITA Down; Cuts FY21 View - Quick Facts

Dutch consumer electronics giant Philips Electronics NV (PHGFF.PK,PHG) reported Monday that its third-quarter net income was 2.98 billion euros, significantly higher than last year's 340 million euros.

Earnings per share were 3.24 euros, up from 0.37 euro a year ago.

Income from discontinued operations was 2.54 billion euros, mainly on the sale of the Domestic Appliances business, compared to income of 61 million euros last year.

On a continuing operations basis, income was 442 million euros, up from 279 million euros a year ago.

EBITA, meanwhile, declined to 426 million euros from 456 million euros last year. Adjusted EBITA was 512 million euros, or 12.3 percent of sales, down from 684 million euros, or 15.5 percent of sales a year ago.

Sales fell 6 percent to 4.16 billion euros from last year's 4.41 billion euros.

Comparable sales decline was 7.6 percent due to headwinds on the back of 10 percent comparable sales growth last year.

Comparable order intake increased 47 percent. Order intake increased 17 percent excluding the impact of a partial ventilator order cancellation last year.

Looking ahead, Philips now expects to deliver low-single-digit comparable sales growth with a modest Adjusted EBITA margin improvement for the full year 2021.

Previously, the company expected low-to-mid-single-digit comparable sales growth and an Adjusted EBITA margin improvement of 60 basis points.

Based onstrong customer demand and growing order book, the company expects to resume growth and margin expansion trajectory in 2022 as it works through the headwinds.

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