Philips says net profit falls on charges

Koninklijke Philips NV (PHIA.AE) said Monday that net profit fell in the second quarter as it booked a charge from discontinued operations, while sales stayed flat.

The Dutch technology company didn’t report any net profit in the second quarter, compared with a profit of 250 million euros ($293 million) a year earlier. Sales were unchanged at EUR4.29 billion.

Philips said it booked a charge of EUR184 million from discontinued operations–mainly related to a loss Philips made on its stake in Signify NV (LIGHT.AE), formerly known as Philips Lighting.

The company said net profit from continuing operations was EUR186 million, up from EUR161 million. Its comparable order intake rose 9% on the year-before, it said.

Chief Executive Frans van Houten said the diagnosis and treatment business was a strong-performer, reporting 8% comparable sales growth.

"After a slow start, the personal health businesses gained momentum in the quarter, and we expect this to continue in the second half of the year," he said.

The company reiterated its targets for the 2017-2020 period of between 4% to 6% comparable sales growth, as well as an average annual improvement in its adjusted Ebita margin of 100 basis points.

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