Slowdown, US problems prompt Philips' Q4 profit warning

Amsterdam

PHILIPS warned on Tuesday that fourth-quarter earnings would be worse than expected because of the lengthy closure of a manufacturing plant in Cleveland, Ohio and a slowdown in some of its major markets.

The latest profit warning from the Dutch industrial company comes after its stock underperformed benchmarks and chief executive Frans van Houten announced plans last year to break up the company, splitting off its lighting business.

Philips, which plans to focus on its higher margin healthcare division, said a weak fourth quarter will also reflect "ongoing softness in certain markets and stronger-than-anti…