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Correction to Philips 4Q Net Profit Story

By Carlo Martuscelli Dow Jones Newswires

Koninklijke Philips NV (PHIA.AE) said Tuesday that net profit increased 37% in the fourth quarter, as it backed its 2018 guidance and kept its dividend unchanged.

The Dutch electronics producer said that net profit was 860 million euro ($1.06 billion) in the last three months of 2017, compared with EUR626 million a year before.

Comparable sales were up 5% on the back of its personal-health division as well as its diagnosis and treatment businesses. Philips said it increased its adjusted earnings before interest, tax, and appreciation margin by 140 basis points to 16.7%.

The company kept its dividend unchanged form last year at 80 cents.

Chief Executive Frans van Houten backed the company's targets for 2018, and said he was confident in delivering 4%-6% comparable sales growth and on average 100 basis points annual improvement in adjusted Ebita margin this year.

"We expect our markets to grow at 3%-5% on a comparable basis in 2018," he added.

The company said it had reduced its shareholding in Philips Lighting down to 29% as of Dec. 31.

Philips said that it was delivering on its productivity program ahead of schedule, with annual savings of EUR483 million, ahead of its EUR400 million target.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

Corrections & Amplifications

This item was corrected on January 30, 2018 at 0745 GMT to reflect that Philips reported a net profit for the fourth quarter of 860 million euros ($1.06 billion), a 37% rise compared with EUR626 million a year earlier. The original item incorrectly misstated the net profit figure and percentage move in the headline, first and second paragraphs.

Koninklijke Philips NV reported a net profit for the fourth quarter of 860 million euros ($1.06 billion), a 37% rise compared with EUR626 million a year earlier. "Philips 4Q Net Profit Down, Backs Guidance," at 0646 GMT, misstated the net profit figure and percentage move in the first and second paragraphs. Philips fourth-quarter net profit was EUR860 million, not EUR476 million.

(END) Dow Jones Newswires

January 30, 2018 02:42 ET (07:42 GMT)