Philips posts three-fold jump in profits

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Philips posts three-fold jump in profits
Dutch electronics giant Philips on Monday reported a three-fold jump in net profit for the second quarter, boosted by demand for smart lighting, household appliances and health care equipment.

Net profit reached 317 million euros ($416 million), up from 102 million euros during the same time last year.

Sales for the three months ending June amounted to 5.65 billion euros, a 1.4 percent increase year-on-year, Philips said in a statement.

"We are pleased that in the second quarter our operational results improved year-on-year for the fifth quarter in a row... in a challenging economic environment," chief executive Frans van Houten said.

Philips is traditionally known for making televisions, small appliances and light bulbs but has in the last decade branched out to the health and lifestyle sector.

The company reported "better operating results across all sectors."

The group's best performer was digital LED lighting which showed a 28 percent jump in sales over the previous year. It made up 25 percent of the group's total lighting sales which reached 2.04 billion euros for the second quarter.

The Eindhoven-based company has been selected as a provider of advanced lighting systems for next year's FIFA World Cup football tournament in Brazil, including the interior, exterior and architectural lighting for the Maracana, Rio de Janeiro's main stadium.

In the consumer lifestyle sector, Philips said it has successfully introduced a number of new products including a noodle maker and air purifiers to China, while a new three-in-one male electronic shaver and kit was driving sales in North America.

Philips said orders were up 7.0 percent for health care products, lifted by the launch of a new range of X-ray machines and the recent $300-million alliance with the a US medical centre to supply medical equipment over the next 15 years.

Despite the deals, Philips pointed out that overall sales in health care remained flat, especially in western Europe, where there was a slight dip in equipment orders.

Founded in 1891, Philips employs around 115,000 people globally.

The group in April 2012 sold its troubled television branch to TPV technology and in January this year announced it was selling its entertainment business to long-term partner Funai.

Philips chief executive Van Houten on Monday also warned the group was "concerned about economic uncertainties round the world, however we remain committed to reach our financial targets this year".

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Further reading: Home Entertainment, Philips
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