Philips’ profits more than double in third quarter

The world’s leading manufacturer of lighting and consumer electronics- Philips has more than doubled it’s profits after disposing of its loss making television business.Philips' profits more than double in third quarterPhilips’ net profit for the third quarter was 169 million euros (£138 million) compared to 74 millio euros in the same period last year.

Shares in the company rose by 4.6% on results announcement.

But Philips warned it is is facing a string of “headwinds”- including in Europe, which is suffering from the continuing debt crisis.

The company is reducing costs and said that cumulative savings amounted to 306 million euros in the third quarter of 2012.

“We continue to experience strong economic headwinds on a global scale, which affect growth going forward,” said chief executive Frans van Houten.

“We have full confidence in our ability to continue improving the operational and financial performance of the company.  We now expect restructuring and acquisition related charges of approximately 300 million euros in the fourth quarter of 2012.”

Frans van Houten, CEO of Philips: “We need to invest in innovation”

Last year, the company made a loss of 54 million euros on televisions between July and September.

The firm is the world’s largest lighting maker by sales and says that almost a quarter of the lights it sells are now LEDs.

Mr Van Houten said that it will have to close some factories that make traditional bulbs as a result.

The sale of the loss making business is highly competitive- with Sony and Sharp also recently reporting huge losses on their respective businesses.

In recent years Royal Philips Electronics of the Netherlands has diversified into a Health and Well-being company, focused on improving people’s lives through timely innovations.

As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”.

October 31, 2012  Tags: , , , , ,   Posted in: Business Profits, Business Win, Exporting Businesses, Global Businesses, Growing Profits, Technological Businesses, Uncategorized

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