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Philips earnings drop, brighter skies ahead

Electrical goods producer Philips on Monday reported a drop in second-quarter earnings but expects to see an improvement in the second half of the year.

Earnings before interest, tax and amortization (EBITA) fell to 415 million euros ($562 million) in the second quarter, down from 601 million in the same period last year.

Group chief executive Frans van Houten said the firm faced ongoing softness in certain markets, unfavorable currency exchange rates and the voluntary suspension of production at its health care facility in Cleveland.

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Koen van Weel | AFP | Getty Images

But EBITA, excluding restructuring and acquisition-related charges and other items, was expected to exceed last year's level in the second half of the year as the group implements a cost savings program.

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Net income for the quarter came in at 243 million euros, against forecasts of 164 million euros in a Reuters poll, supported by lower tax charges.

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