Dutch conglomerate Philips Electronics said today visibility beyond the short term was still low after reporting a bigger-than-expected operating profit.
Fourth quarter earnings before interest, taxes and amortisation (EBITA) was €662 million. This compared to the average of €502 million in a Reuters poll and €26 million a year earlier.
Fourth-quarter sales continued to improve from the third quarter, to €7.26 billion from €5.6 billion, and beat average analyst expectations of €7 billion, driven by its emerging markets.
The world's biggest lighting maker, also a top-three hospital equipment maker and Europe's biggest consumer electronics producer, gave no hint of a new timeline for its mid-term targets.
"Today's economic circumstances do not allow for a reliable prediction," Philips' chief executive Gerard Kleisterlee said in a statement, adding that the company proposed a €0.70 per share dividend "as a sign of confidence" in the future.
Philips did say it expected 2010 to be a "solid step" towards its EBITA margin target of at least 10 per cent, which was 9.1 per cent in the fourth quarter and 4.5 per cent over 2009.
Philips abandoned its mid-term programme in Dec. 2008 due to the recession, saying it could not reach the targets on time.
A recovery of Philips' consumer lifestyle business had renewed analysts' hopes the group would come with a new timeline.
Philips competes with the healthcare units and lighting unit of General Electric, which beat expectations on Friday and predicted flat earnings for 2010.
German competitor and industrial conglomerate Siemens said earlier this month trading conditions were still tough, while downward pressure on selling would impact revenues.
Reuters