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Philips net profit triples in Q3; sales rise 9.6 per cent, beating expectations(Canadian Press DataFile Via Acquire Media NewsEdge) AMSTERDAM, Netherlands _ 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 C524 million (US$730 million), up from C176 million in the same period a year ago, and included a C154 million gain on the share of Philips' stake in semiconductor maker NXP NV. Sales rose 9.6 per cent to C6.16 billion, helped by a relatively weak euro. They would have been up just one per cent on comparable terms, the company said. Chief Executive Officer Gerard Kleisterlee described the global economy as ``still fragile.'' Sales in emerging markets rose 19 per cent _ or 7 per cent 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 C40 million, down from C125 million 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 per cent and operating earnings quadrupling from C40 million to C169 million. At the company's consumer products division, which makes shavers and televisions, sales rose 1 per cent despite a dip in television sales after the World Cup. Operating profit rose from C126 million to C137 million. Philips' health care arm grew sales 14 per cent and operating profits nearly doubled from C110 million to C212 million, as margins improved and sales grew in most areas outside the United States. However, the company said that North American orders were up 11 per cent in the quarter, signalling future improvement as uncertainty over U.S. health reform eases and purchasers resume buying. (c) 2010 The Canadian Press |