Philips Electronics has reported a trebling of its third-quarter profits, with the group’s net profit rising by €57 million to €174 million when compared to the same quarter in 2008.
Analysts had expected the group to post a net loss of €45 million.
The group’s EBITDA also increased by €287 million compared to the same quarter a year previous. This was largely due to an €87-million release of a provision for retiree medical benefits in the quarter and a €259-million asbestos-related charge that was incurred last year, Philips said.
The group’s comparable sales were down 11pc in the third quarter, up from the 19pc decline reported in the second quarter. This was mainly attributable to improvements in the consumer lifestyle and lighting divisions, Philips said.
However, the group said while it was “encouraged” by the positive developments in sales and profitability in the third quarter, “we remain cautious about the short-term outlook in the absence of structural recovery in the majority of our end-markets”.
Philips is cutting 6,000 jobs worldwide.
Article courtesy of businessandleadership.com
Photo: Philips Electronics’ comparable sales were down 11pc in the third quarter, up from the 19pc decline reported in the second quarter.