Philips profit falls 29% on impairment charge

Koninklijke Philips NV said Monday that third-quarter net profit fell 29%, hit by an impairment charge and a lower margin at the company's connected-care operations.

The Dutch technology company , which earlier this month cut its margin guidance for 2019, made a net profit of 208 million euros ($230.4 million) for the quarter to Sept. 30 compared with EUR292 million a year earlier.

Profit from continuing operations was EUR211 million compared with EUR307 million in the year-earlier period. This included a EUR78 million impairment charge, the company said.

Sales for the quarter rose to EUR4.70 billion from EUR4.31 billion a year earlier, Philips said. Comparable sales grew 6%, it said.

The company said adjusted earnings before interest taxes and amortization was EUR583 million, up from EUR568 million a year before. However, adjusted Ebita margin fell to 12.4% from 13.2% in the year-earlier period.

For 2019, Philips said it continues to expect comparable sales growth of 4% to 6% and an adjusted Ebita improvement of 10 to 20 basis points.