Philips warns of lower profit due to market slowdown
AMSTERDAM (Reuters) - Philips warned on Tuesday that fourth-quarter earnings will be lower than expected due to a market slowdown and fallout from the closure of a manufacturing plant in Cleveland, Ohio.
The company said it expected adjusted earnings before interest, taxation and amortisation (EBITA) of 735 million euros (575 million pounds) for the quarter.
Analysts at ING said that consensus estimates for adjusted EBITA were 795 million euros.
Philips shares were down 2.7 percent to 23.14 euros in early Amsterdam trading.
The company said its quarterly result reflected "ongoing softness in certain markets and stronger-than-anticipated foreign exchange headwinds in emerging markets".
It also raised its estimate of the impact on full-year operating earnings from a lengthy closure of a U.S. factory that makes medical imaging equipment.
The closure would reduce 2014 EBITA by approximately 225 million euros, it said, raising previous estimate of 180 million.
The plant has now reopened, Philips said.
(Reporting by Toby Sterling; editing by Anthony Deutsch and Jason Neely)
