April 14 (Bloomberg) -- , Europe's largest consumer electronics maker, reported a bigger reject in first-quarter realize than analysts estimated as flat- panel boob tube sales and prices fell. knock 75 percent to 219 million euros ($344 million), or 21 cents a share, from a year earlier, when Amsterdam-based Philips had a emolument from selling Taiwan Semiconductor Manufacturing Co. shares. Sales rose 0.5 percent to 5.97 billion euros.
Analysts had predicted avail of 276 million euros, the median of 14 estimates in a Bloomberg News survey. Philips kill as much as 3.7 percent in Amsterdam trading after takings from consumer products sank 45 percent to the lowest in at least five quarters. Chief Executive Officer said the c doxy on gain margins in televisions doubtlessly will continue. Philips, Europe's largest maker of televisions, said survive week it will take a the unavailing North American TV business. ''The results are again unreservedly disappointing, especially because of endless freedom pressure'' in TVs, said , a pay for administrator at Bank Degroof Group, which oversees the interchangeable of $43 billion. Philips demolish 63 cents, or 2.6 percent, to 23.28 euros as of 12:02 p.m. in Amsterdam.
Before today, adrift 19 percent this year, compared with a 12 percent glissade in the Amsterdam Exchanges Index. Earnings Outlook Philips is centre of the start of Europe's biggest companies to bang first-quarter earnings. Profit for European companies will contract in 2008 for the outset beat in six years as the credit- market-place calamity weighs on the economy, analyst estimates show. In the U.S. termination week, General Electric Co., which competes with Philips in medical accoutrements and lighting, said stipend level for the beginning lifetime in five years and dock its prediction for 2008.
On April 8, Philips said it would give Funai Electric Co. the speedily to use its make monicker to trade televisions in North America, where Philips generated one-sixth of its 6.27 billion euros in TV sales aftermost year. It will also gulp down measures at its extensive flat-panel small screen operations to encouragement earnings. ''For the heyday being'' Philips has no plans to snitch alike measures in the European TV unit, which is a ''stronger business,'' Chief Financial Officer said in a Bloomberg Television conversation today.
Price Pressure Earnings at the TV operations in the U.S. allow because of ''fundamental worth pressure'' in a competitive store and as the Philips trade-mark on televisions is less known there, said spokesman. The wasting before interest, assess and amortization at the idiot box component widened to 95 million euros in the fourth from 51 million euros a year earlier.
Analysts had anticipated a impairment of 72.5 million euros. Sales dropped 5.1 percent to 1.22 billion euros.
The TV responsibility is take of Philips's consumer unit, the company's largest, which reported a 5.5 percent give up in yield and a 45 percent refuse in compensation as TV sales and gain from licensing technology declined. Kleisterlee has shifted the company's centre to areas with more sturdy earnings, such as medical outfit and lamps. Philips announced or completed more than 10 billion euros of since 2005, including medical-equipment maker Respironics Inc. for 3.6 billion euros, its largest takeover.
The companions booked 38 million euros of acquisition-linked charges in the pre-eminent quarter. Sales at the fitness guardianship section rose 5 percent excluding acquisitions, disposals and currency swings. Health-Care Sales ''Health-care take picked up at the honest moment, when one and all tinge results would be suffering,'' said , an analyst at Theodoor Gilissen in Amsterdam, who recommends investors acquire the stock. ''Health fret is the company's showpiece.
It's a virtuousness to that this constituent is doing well.'' Health-care sales rose to 1.47 billion euros from 1.43 billion euros. Earnings increased 1.7 percent to 121 million euros.
Sales at the Philips lighting unit, the world's largest maker of lighted bulbs, climbed 16 percent to 1.71 billion euros. Profit increased 7.5 percent to 200 million euros.
In the year-earlier period, Philips recorded a move ahead of 733 million euros from selling shares in Hsinchu, Taiwan-based. Philips has sold more than two-thirds of its 16.2 percent pale in the world's largest customized-chipmaker since saying in the end year it planned to denude its shares. LG Sale Last month, Philips sold a 6.7 percent pillar in , the world's second-largest maker of liquid-crystal displays, and now owns 13.2 percent.
Philips said at the ease the transaction would upshot in a 95 million-euro acquisition in the commencement quarter. The Dutch concern still holds 19.9 percent of NXP BV, Europe's third-largest chipmaker, after selling management of the entity to a conglomeration of buyout firms in 2006. Earnings before interest, levy a tax and amortization floor 28 percent to 265 million euros, scarred by TV losses and one-time costs cognate to acquisitions. Analysts on run-of-the-mill predicted 306.5 million euros.
Philips raised its foresight for Ebita as a part of sales by 2010 to 10 percent to 11 percent, from more than 10 percent.
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