Philips Healthcare ‘misses 2014 targets’

Philips Healthcare’s profits have been impacted by market turbulence and unstable currency, according to chief executive Frans van Houten.

During a presentation on Tuesday (January 27th), Mr van Houten revealed the full year results for 2014. The figures indicated that turnover dropped by three per cent during the year to 21.4 billion euros (16.04 billion pounds).

Operating profit was down to 881 million euros compared to the 2.3 billion euros achieved in 2013.

Philips issued a profit warning two weeks ago, explaining that volatile market conditions and the delayed start up of its factory in Cleveland, US, had dampened its performance in the fourth quarter of 2014.

Mr van Houten commented: “All in all, 2014 was a step backward. We have taken the necessary measures, but we remain concerned about the macro-economic prospects and the instability in some markets. We expect increased incidental costs for 2015 and 2016.”

Philips was split into two separate companies last year: Philips Lighting and Philips Healthcare (formerly Philips Medical Systems). The latter manufactures technology for the healthcare sector and consumer lifestyle products, such as electric razors and toothbrushes.