DB Liabilities Take Toll on Philips Operating Capital

23 July 2012 (PLANSPONSOREurope.com) - While Philips has recorded quarter on quarter sales growth, net pension liabilities have driven down net operating capital, according to second quarter results.

The global electronics giant’s Q2 results reveal comparable sales growth to 5.9bn euros (5%)and EBITA [earnings before interest, taxes and amortization] of 450m euros.

However, net operating capital decreased by 1.2bn year on year which the group attributes to an increase in net pension liabilities in Q4 along with a decrease in the value of currency hedges at group level.

PLANSPONSOREurope Staff
editors@plansponsoreurope.com