AMSTERDAM (Reuters) - Dutch company Philips Electronics posted a 71 percent fall in third-quarter core profit as a charge for asbestos claims and restructuring costs impacted the group result.
Earnings before interest, tax and amortization (EBITA) were 128 million euros ($175.7 million), compared with the average analyst expectation of 168 million euros in a Reuters survey of eight analysts.
"Given the limited visibility the current economic environment brings, we have taken a number of actions to safeguard profitability," Philips Chief Executive Gerard Kleisterlee said in a statement.
Philips said it expected up to 230 million euros in restructuring charges in the fourth quarter.
Philips' consumer business is feeling the impact of slowing economies, particularly in North America and Europe, where it generates the bulk of revenue from products ranging from MP3 players and digital photo frames to water kettles, toasters and shavers.
The unit's profit fell 44 percent to 95 million euros, while the average analyst expectation was 91 million euros.
Philips said it had completed 3.1 billion euros of its 5 billion euro share buyback and that it would slow down the completion of the program due to the economy.
Group net profit rose 8 percent as a 241 million euro charge for future asbestos claims in the United States was offset by a 302 million euro book gain from the sale of Philips remaining stake in Taiwan Semiconductor Manufacturing Company TSMC <2330.TW>.
(Reporting by Harro ten Wolde; Editing by Sue Thomas)
