Philips restructuring pays off

Suzie Neuwirth

THE WORLD’S largest lighting maker Philips today reported growth in its first quarter results, after two years of streamlining the business.

The Dutch-based company announced earnings before interest, tax, depreciation and amortisation (EBITDA) of €451m in the quarter, compared to €402m in the same quarter the previous year.

“We made solid progress again in the first quarter as all sectors contributed to the 31% improvement of our operational results, clearly demonstrating the positive impact our Accelerate! transformation program is having on our company,” said chief executive Frans van Houten.

“The initiatives to improve gross margins, structurally lower our cost base and reduce our inventory levels led to a better performance in the quarter.”

The company anticipates a slow first half to the year due to challenging markets in Europe and the US, van Houten added.