Philips has reported sales of €7.6 billion (Dh36bn) for the fourth quarter of 2008 due to strong sales in its healthcare segment, which posted a sales growth of nine per cent and showed improved earnings.
On the other hand, lower sales have been reported at consumer lifestyle and parts of lighting due to the challenging retail and automotive markets.
"While we are very pleased with the excellent performance of healthcare, our fourth-quarter results are a reflection of both the severe impact of the global financial and economic crisis and the decisive actions taken by management.
"The effects of the steep downturn have led not only to value adjustments of our remaining financial holdings and the impairment of goodwill at Lumileds, but also to a sharp reduction in demand, especially in consumer lifestyle and in our OEM businesses in lighting, compounded by de-stocking in the whole supply chain," Gerard Kleisterlee, President and CEO of Royal Philips Electronics, said.
"The development of our quarterly results reflects the unprecedented speed and ferocity with which the economy softened in 2008.
"However, I am confident that the overall strength of our business portfolio will carry us through this downturn," said Kleisterlee.