Philips' Second Quarter and Semi-Annual Results 2010

Philips reports second-quarter EBITA of EUR 527 million and sales of EUR 6.2 billion

July 19, 2010

  • Comparable sales up 12%, led by double-digit growth at Lighting and Consumer Lifestyle
  • Emerging markets sales growth accelerates to 29%, now representing over one-third of Group sales
  • EBITA of EUR 527 million, or 8.5% of sales
  • EBITA, excluding EUR 93 million restructuring and acquisition-related charges, at 10% of sales
  • Net income of EUR 262 million


Gerard Kleisterlee, President and CEO of Royal Philips Electronics:


“In Q2, Philips delivered another strong quarter, with good top-line growth and strong profitability in all three operating sectors. Sales performance was especially strong in emerging markets. We are particularly pleased to have reached an adjusted profitability level of 10% in the quarter.


It is encouraging to see that our performance continues to improve, despite ongoing weakness in many global markets and economic uncertainty – a clear testimony to the soundness of our strategy and the strength of our portfolio. I believe we remain well on our way to becoming the leading company in health and well-being and consider this quarter another clear step in the right direction.”




Quarterly Report

Q2 2010 - Quarterly and Semi-Annual Report

Q2 2010 - Quarterly and Semi-Annual Results Presentation 


Conference call and audio webcast 

A conference call with Pierre-Jean Sivignon, CFO, to discuss the results, will start at 10:00AM CET. A live audio webcast of the conference call will be available through the link below.

Q1 2010 conference call audio webcast 


More information about Pierre-Jean Sivignon
Click here for Mr. Sivignon's CV and images 

Electron partnership

Philips and Electron announced a partnership for the development and production of healthcare solutions specifically designed for the Russian healthcare market, initially focusing on imaging modalities.

RXi Pharmaceuticals research agreement

Philips and RXi Pharmaceuticals entered a research agreement to explore innovative ways of using ultrasound to trigger the delivery of new drug therapies that may treat diseases such as cancer and cardiovascular disease.

Cross-licencing agreement with Cree

Philips and Cree signed a comprehensive worldwide patent cross-licensing agreement designed to accelerate growth of the LED lighting market.

Acquisition of Amplex

Further strengthening its outdoor lighting portfolio, Philips announced its intention to acquire the street lighting controls activities of Amplex A/S, a Danish provider of energy-efficient infrastructure solutions.

Lighting South Africa’s sport stadiums

Six of South Africa’s top sports stadiums were equipped with Philips’s new ArenaVision sports lighting systems, joining a long list of sports facilities around the world lit by Philips.

Introducing HD 3D Ready LED TVs

In Q2, Philips introduced its range of Full HD 3D Ready LED TVs, delivering a truly immersive 3D cinema experience in the home.

Livable Cities Award

The Philips Livable Cities Award program was launched in May, with a total prize fund of EUR 125.000, to support simple solutions that improve people’s health and well-being in cities.

Innovative boarding gate at Schiphol

Amsterdam Airport Schiphol opened an innovative boarding gate, co-created with Philips Design and Philips Applied Technologies, using lighting and infotainment to enhance the traveler experience.

For further information, please contact:

Arent Jan Hesselink
Philips Corporate Communications
Tel:  +31 20 59 77415


Joon Knapen
Philips Corporate Communications
Tel:  +31 20 59 77477


About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs more than 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at

Forward-looking statements

This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, in particular the paragraphs on “Looking ahead” and “Outlook”. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future EBITA and future developments in our organic business. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include but are not limited to domestic and global economic and business conditions, the successful implementation of our strategy and our ability to realize the benefits of this strategy, our ability to develop and market new products, changes in legislation, legal claims, changes in exchange and interest rates, changes in tax rates, pension costs and actuarial assumptions, raw materials and employee costs, our ability to identify and complete successful acquisitions and to integrate those acquisitions into our business, our ability to successfully exit certain businesses or restructure our operations, the rate of technological changes, political, economic and other developments in countries where Philips operates, industry consolidation and competition. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see the Risk management chapter included in our Annual Report 2009.
Third-party market share data
Statements regarding market share, including those regarding Philips’ competitive position, contained in this document are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.


Use of non-GAAP information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used in conjunction with the most directly comparable IFRS measures. A reconciliation of such measures to the most directly comparable IFRS measures is contained in this document. Further information on non-GAAP measures can be found in our Annual Report 2009.


Use of fair-value measurements
In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable.
Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When observable market data does not exist, we estimated the fair values using appropriate valuation models. They require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments. Critical assumptions used are disclosed in our 2009 financial statements. Independent valuations may have been obtained to support management’s determination of fair values.