This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Koninklijke Philips' CEO Discusses Q1 2012 Results - Earnings Call Transcript

As usual, our press release and the accompanying information slide deck were published at 7 AM Central European Time this morning. Both documents are now available for download from our Investor Relations website. We will also make available a full transcript of this conference call on the Investor Relations website by tomorrow at the latest.

With that, let me hand over to Frans to start proceedings for the day.

Frans van Houten

Thanks, Abhijit. Welcome and thank you for joining us today for our first quarter 2012 earnings conference call.

The end of the first quarter marks the completion of my first year as CEO of Philips. And as I reflect on my tenure this far, I am pleased with the progress that we have made over the last year. It remains clear that Philips has a wealth of talent, great assets, a strong brand, a global footprint, we operate in the right markets and have the right portfolio to address key global trends, and a large majority of our businesses have the right fundamentals for profitable growth. Yet, our performance does not match our potential. In order to address this disparity, we designed and launched our change in improvement program Accelerate! which is aimed at reigniting organic growth in Philips, and making us an agile entrepreneurial innovator.

I’m happy to report that we are now seeing solid improvement across all sectors of our business and our growth figures for the first quarter confirm this trend, with Healthcare growing at 9%, Consumer Lifestyle growth businesses above 7%, and Lighting at 2%. Excluding external sales of Lumileds, which saw a double-digit decline in the quarter, due to inventory correction in the channel and an increasing mix of internal sales, our Lighting business actually grew by 4% in the quarter. LED product sales for the quarter grew by 22%, and if we were to exclude Lumileds even by 50%.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs