Philips said weak sales of flat screen TVs were behind its disappointing fourth-quarter profit.
Shares in the Dutch consumer appliances, healthcare and lighting group tumbled 5.7 percent as it posted its latest results. Net profit was 465 million euros, well short of analysts’ forecasts.
Philips said western consumers would be reluctant to spend this year, adding urgency to its drive into emerging markets. It is seeking to boost sales in fast-growing countries including China and India.
Philips is aiming for emerging markets to be at least 40 percent of group sales by 2015. Currently they account for a third of sales.
Pierre-Jean Sivignon, the outgoing chief financial officer at Philips, said the group is looking at acquisitions, particularly in emerging markets, and that it would consider a buyback of shares if deals don’t materialise.
Philips has just said it would acquire the assets of the Preethi business, a leading kitchen appliances company in India.
Lower TV sales hit Philips profit