Tags: EU | Netherlands | Earns | Philips

Philips' Profit Triples on Lighting, Health Sales

Monday, 18 Oct 2010 07:27 AM

Royal Philips Electronics NV, the Dutch maker of shavers, televisions, medical imaging equipment and light bulbs, said Monday net profit tripled in the third quarter due to strong sales in its lighting and health care arms as well as a one-time gain on the sale of a stake in its former semiconductor arm.

Net profit for the period ended was 524 million euros ($730 million), up from 176 million euros in the same period a year ago, and included a 154 million euro gain on the share of Philips' stake in semiconductor maker NXP NV. Sales rose 9.6 percent to 6.16 billion euros, helped by a relatively weak euro. They would have been up just one percent on comparable terms, the company said.

Chief Executive Officer Gerard Kleisterlee described the global economy as "still fragile."

Sales in emerging markets rose 19 percent — or 7 percent in euro terms. "This means that we now generate more than one-third of our sales in these markets," Kleisterlee said in a statement.

Earnings were also helped by lower restructuring charges of 40 million euros, down from 125 million euros a year ago.

Philips' lighting division is benefiting as consumers switch to energy-saving bulbs and it was the company's strongest performer in the quarter with sales up 16 percent and operating earnings quadrupling from 40 million euros to 169 million euros.

At the company's consumer products division, which makes shavers and televisions, sales rose 1 percent despite a dip in television sales after the World Cup. Operating profit rose from 126 million euros to 137 million euros.

Philips' health care arm grew sales 14 percent and operating profits nearly doubled from 110 million euros to 212 million euros, as margins improved and sales grew in most areas outside the United States. However, the company said that North American orders were up 11 percent in the quarter, signaling future improvement as uncertainty over U.S. health reform eases and purchasers resume buying.

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Royal Philips Electronics NV, the Dutch maker of shavers, televisions, medical imaging equipment and light bulbs, said Monday net profit tripled in the third quarter due to strong sales in its lighting and health care arms as well as a one-time gain on the sale of a stake...
EU,Netherlands,Earns,Philips
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2010-27-18
Monday, 18 Oct 2010 07:27 AM
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