Apr. 14. 2008 / 4:00AM, PHG - Q1 2008 Royal Philips Electronics Earnings Conference Call
The other incidentals I am talking about is the one which was communicated earlier on last week where we talked about EUR125 million, and there I give you little bit more details. One is that about 50% of that EUR125 million is related to the project with Funai, the rest is related to the overall supply chain. And the other element I will give to you, to help you in your models, is that out of that out of that EUR125 million I would say 20% to 30% will be in the second quarter and the balance of the amount being evenly split between more or less Q3 and Q4. I might have to come back to you on that, but that's probably the way we see it right now. And in terms of helping you to model next year we expect, as I mention, those one-offs in the case of the EUR125 million to have one year plus payback.
Now the second part of your question, the softness in Lighting in Europe. I think it's fair to say that, even though we were in positive growth territory we did see some softness in particular, I think essentially in Western Europe, I have to say because the rest emerging market did extremely well as far as Lighting is concerned. But we did some softness in a couple of countries in Western Europe on Professional Luminaires.
How do I read that moving forward? I think it's a bit early to tell. We had inventory adjustments because we could clearly see that in the channels the people were a bit more cautious and reduced as they normally do at that stage of the year, their
So I would say that on the Consumer Luminaire
excuse me on the Professional Luminaire side in Europe where the softness
was, it's hard to say if it is essentially a temporary adjustment of those inventory or there is something a bit more profound there. Too early to say, I think we need one more quarter to answer that question.
William Mackie - MainFirstBank - Analyst
Okay, and just a tiny bit more color on the trading in Healthcare. Obviously we've discussed on this call price pressure and supply demand changes in the US, you comment on a rise in the receivables level in your Healthcare business. Are you changing the terms of trade with any of your customers to provide incentives for sale?
Pierre-Jean Sivignon - Royal Philips Electronics - CFO
No. I want to give you total clarity. It's actually what has happened, and I will give you details, we have changed our software in North America in Q1 on the Healthcare side which has had the impact of delaying our billing essentially for two months. So the vast majority of the billing of North American took place in March and we very much expect those receivables and the DSO as well to come back to normal essentially by the end of Q2. So we have absolutely no change the elements of the selling conditions in North America in the course of Q1.
Operator Your next question comes from Mr. Didier Scemama from ABN Amro. Please go ahead sir.
Didier Scemama - ABN Amro - Analyst
Good morning, just two questions. First of all, can you give us a sense of the performance in DAP? In Q1 '07 you had an exceptionally strong quarter because you had very few product returns in January which led to, I think, about 17% EBIT margin. So I was wondering where if you could give us a sense of the EBITA margin perhaps in DAP at least directionally versus last year? First question.
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