Dutch group Philips Electronics missed analysts' forecasts with a fall in third-quarter core profit amid disappointing LCD display sales and asbestos charges.
Net profit came in at €4.24 billion, including a gain, also of €4.24 billion, on the sale of its semiconductors business. This compared with a median forecast of €257 million excluding the chip unit sale by 15 analysts polled by Reuters.
The results were hit by an unexpected charge of €265 million for asbestos-related liabilities dating back to the 1970s, which should cover the company until 2016.
Net profit a year earlier was €1.436 billion, with one-off gains of well over a €1 billion.
Chief financial officer Pierre-Jean Sivignon said comparisons with the previous year were difficult due to the number of exceptional items.
Revenues undershot expectations, falling to €6.31 billion from €7.62 billion a year earlier and compared with a median analyst forecast of €6.53 billion. The decline was the result of the sale of the semiconductor business in the quarter.
The company confirmed plans to hand back €4 billion of cash to shareholders through share buybacks and said it would buy shares worth €2.5 billion before the end of the year.
Philips shares fell 2.1 per cent in early trading, underperforming a Eurotech index rise of 0.5 per cent.