Philips leaves a profit to a loss of 104 million euros in 3Q

SAO PAULO-the manufacturer Royal Philips Electronics from the Netherlands, faced net loss of 104 million euros in the third quarter, according to balance sheet released on Monday by the company. In the same period last year, the profit had been of 282 million euros. The figures take into account the portion assigned to controllers.
Net revenues had fallen 0.9% light from July to September, to 5.55 billion euros. While sales in developed markets followed weak, growth in emerging countries didn't come, compromising the performance of billing. In addition, the company saw demand fall for health appliances and lighting unit.
Despite the lower revenue, the costs have not adapted. The line of the balance sheet rose 15.4%, to 3.72 billion euros, already committing the result. In addition, the selling expenses advanced 2.6% and reached 1.28 billion euros, but with research and development have been cut in 11.4%, to EUR 398 million. The injury came before taxes and interest, of 91 million euros.
"We tried to run things in a 2014 challenging, but we are not satisfied with our performance in the third quarter," admitted Frans van Houten, President of Philips. "Major markets like China and Russia are weakened and still face litigation over patents," he recalled. This lawsuit relates to Masimo, who accused the Dutch to use its technology in health equipment and won the action at first instance, with compensation of $ 466 million.
Also worsened the situation of the group between July and September that the company had paid 38 million euros in taxes on the profit, and a year earlier had released tax credit of 110 million euros.
(Renato Rostás | Value)