Philips LED Lighting Sales Increases 37% YoY in the Second Quarter of 2012

Philips released its second quarter 2012 financial report. According to the financial report, sales amounted to 5.9 billion euros, a year-on-year increase of 5%, net income of 167 million euros, and EBITDA of 450 million euros.

Philips' second-quarter financial report showed that its healthcare business grew 7%, lighting business grew 6%; growth market sales rose 11% year-on-year, 35% of total revenue; EBITDA (EBITA) 450 million euros , accounting for 7.6% of sales; thrift saved a total of 176 million euros. Philips’ growth business in lighting, healthcare, and quality of life has achieved significant growth, and the positive growth momentum has also increased operating profitability.

Driven by the double-digit growth in light source and lighting electronics business, the Lighting Division's sales increased by 6% year-on-year, and the automotive lighting business achieved nearly 10% growth. LED lighting business sales increased by 37% year-on-year, currently accounting for 20% of the lighting business. The division’s profit before interest and tax amortization reached 4.6% in the second quarter.

Compared with the same period of last year, the overall sales of the healthcare division increased by 7%, and its business sales all showed significant growth. The growth rate in the growth market was as high as 22%. Excluding the impact of exchange rate changes, the volume of equipment orders based on imaging systems, monitoring and clinical information services increased by 4% year-on-year, and the Division's profit margin before interest-tax amortization reached 13.8% in the second quarter.

Sales of Quality Life Division increased by 3% year-on-year. Growth in the growth portfolio—Personal Care, Health & Wellness, and Home Appliances (Home Appliance) business growth was offset by sales decline in AV and accessories. The division’s profit before interest and tax amortization in the second quarter reached 7.6%, including a one-time profit from the sale of voice processing business.

Since launching the 2 billion euro stock repurchase program in July 2011, the company has completed 56% of the plan.

Mr. Wan Dun, CEO of Royal Philips Electronics of the Netherlands, said: “The second quarter of 2012 is encouraging. It can be seen that our firm implementation of the “Accelerated Growth” transformation program has been implemented vigorously and has enabled us to achieve 2013. The medium-term financial goals for the year have taken another important step."

In addition, Philips has signed a distribution agreement with Funai on North America’s AV and accessories business and sold voice processing business. Marriott pointed out that the European business accounted for 25% of the group's sales, but will continue to take measures to reduce the risk of global economic retrograde.