Dutch consumer electronics giant, Philips, reported on Monday a fall in earnings in the final quarter of 2021 but said it aimed to be back in the black later in the new year.
The Amsterdam-based company said that its fourth-quarter net income attributable to shareholders dropped to 157 million euros (178 million dollars) or 0.18 euros per share from last year’s 603 million euros or 0.66 euros per share.
Income from continuing operations for the latest quarter was 139 million euros and included an impact of 220 million euros related to a recall action affecting the Respironics subsidiary.
The U.S. medical supply company specialised in respirators.
Income from continuing operations was 508 million euros.
Sales for the fourth quarter were 4.94 billion euros, down from 5.24 billion euros in the previous year.
Comparable sales declined by 10 per cent due to headwinds caused by global supply chain challenges, the postponement of equipment installations in hospitals and the consequences of the Respironics field action, according to Philips’ earnings report.
The company said it will submit a proposal to the annual general meeting of shareholders, to be held on May 10, to declare a distribution of 0.85 euros per common share.
This should be in cash or shares at the option of the shareholder, against the net income of 2021.
The company hopes to return to growth over the course of 2022.
In the short term, however, it said it continued to see significant volatility and headwinds related to COVID-19 and supply chain challenges.
The company expects to start the year with a comparable sales decline, followed by a recovery and strong second half of the year.
For the full year, the company was aiming for comparable sales growth of 5-6 per cent, excluding Sleep & Respiratory Care.
For the group, it targets comparable sales growth of 3-5 per cent and a 40-90 basis-points improvement in the adjusted EBITA margin.