Koninklijke Philips N.V announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2015. For the quarter, the company reported sales of EUR 7,095 million compared to EUR 6,536 million a year ago. Income from operations EUR 162 million compared to EUR 162 million a year ago. Income before taxes was EUR 34 million compared to EUR 84 million a year ago. Loss after taxes was EUR 118 million compared to income of EUR 68 million a year ago. Net loss from continuing operations was EUR 112 million compared to income of EUR 67 million a year ago. Net loss was EUR 39 million compared to income of EUR 134 million a year ago. Net income in fourth quarter of 2015 was impacted by pension de-risking settlement costs, and higher financial expenses and income tax charges. Net loss attributable to the company shareholders was EUR 45 million or EUR 0.05 per basic and diluted share compared to income of EUR 139 million or EUR 0.15 per basic and diluted share a year ago. Net cash provided by operating activities was EUR 956 million compared to EUR 841 million a year ago. Net capital expenditures were EUR 216 million compared to EUR 282 million a year ago. Capital expenditures on property, plant and equipment mainly due to higher investments in real estate refurbishments to increase building capacity and reduce the overall real estate footprint. Adjusted EBITDA was EUR 842 million compared to EUR 743 million a year ago. The increase was mainly driven by cost productivity, partly offset by a negative currency effect of -0.5 percentage points of sales. EBITDA was EUR 263 million compared to EUR 262 million a year ago.

For the year, the company reported sales of EUR 24,244 million compared to EUR 21,391 million a year ago. Income from operations EUR 992 million compared to EUR 486 million a year ago. Income before taxes was EUR 623 million compared to EUR 185 million a year ago. Income after taxes was EUR 384 million compared to EUR 159 million a year ago. Net income from continuing operations was EUR 414 million compared to EUR 221 million a year ago. Net income was EUR 659 million compared to EUR 411 million a year ago. The increase in income tax expense was mainly due to higher taxable profit and the absence of various items that reduced the charge in the prior year, in particular favorable tax regulations relating to R&D investments in 2014. Net income attributable to the company shareholders was EUR 645 million or EUR 0.70 per basic and diluted share compared to EUR 415 million or EUR 0.45 per basic and diluted share a year ago. Net cash provided by operating activities was EUR 1,167 million compared to EUR 1,303 million a year ago. Net capital expenditures were EUR 842 million compared to EUR 806 million a year ago. Adjusted EBITDA was EUR 2,240 million compared to EUR 1,915 million a year ago. Adjusted EBITA increased by EUR 325 million compared to 2014. The year-on-year increase was mainly driven by improved performance in all operating sectors. EBITDA was EUR 1,372 million compared to EUR 821 million a year ago. As at December 31, 2015, the company's net debt was EUR 3,994 million compared to EUR 2,231 million a year ago. Return on invested capital increased to 7.0%, compared to 4.5% in 2014.

For the year 2016, the company continues to expect modest comparable sales growth and the company will build on 2015 operational performance improvement. Taking into account ongoing macro-economic headwinds and the phasing of costs and sales, the company expects improvements in the year to be back-end loaded. In 2016, the company expects a net reduction in sales of EUR 60 million, mainly reflecting lower royalty income due to the expiration of licenses. Effective tax rate to be in the low-30s.