Electronics giant Philips was hit by market turbulence and currency rates in 2014, CEO Frans van Houten said during the presentation on Tuesday of full year results.

Turnover in 2014 fell 3% to €21.4bn. Operating profit was down to €881m compared to €2.3bn in 2013.

The company issued a profit warning two weeks ago, saying adverse market conditions and delayed start-up of its factory in the US city of Cleveland hurt its performance in the fourth quarter.

Last September, Philips announced it was dividing into two independent companies: Lighting, for which it is seeking a buyer, and Health Tech made up of Consumer Lifestyle (electric razors, electric toothbrushes) and Healthcare (medical systems).

Consumer Lifestyle in particular had a strong year in 2014, the company said, with turnover up 6% to €4.7bn and operating profit at €573m compared with €483m in 2013.

‘All in all, 2014 was a step backwards,’ Van Houten told the assembled press. ‘We have taken the necessary measures, but we remain concerned about the macro-economic prospects and the instability in some markets. We expect increased incidental costs for 2015 and 2016.’

Full results