Royal Philips: China, Russia weigh on earnings

ROYAL Philips yesterday reported quarterly earnings that missed analyst estimates because of unfavourable exchange rates and sluggish demand in China and Russia. Earnings before interest, taxes, amortisation and one-time items dropped 16 percent to e536 million (R7.6 billion) in the third quarter, missing a e554m analyst estimate. The stock dropped as much as 3.2 percent. “We are not satisfied with our overall performance in the third quarter,” chief executive Frans Van Houten said. The profit drop is a setback for Van Houten at a time when he is betting Philips’s future on the e100bn consumer health-care market. – Bloomberg