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Philips posts $1.9B loss in Q2 on charges

Philips posts $1.9B loss in Q2 on charges

July 18th, 2011 in News

AMSTERDAM (AP) - Royal Philips Electronics NV, the world's largest lighting company, has reported a (euro) 1.35 ($1.9 billion) loss for the second quarter, mostly due to a (euro) 1.39 billion writedown in goodwill - the amount paid in excess of the fair value of companies it has acquired in the past.

In the same period a year ago, Philips had net profit of (euro) 262 million. The company said Monday second quarter revenues fell 2.6 percent to (euro) 5.21 billion, due mostly to a stronger euro. Operating earnings at the company's lighting and consumer appliances arms were cut in half, while its medical imaging equipment arm grew.

Chief executive Frans van Houten blames "operational challenges and weaker markets," for the operating performance. He says Philips does not expect improvement in the short term.