Electronics giant Philips posted net profit of €167m in the second quarter of this year, as the reorganisation set in motion by chief executive Frans van Houten began to have an effect.

The average profit margin rose from 7.1% to 7.6%, due to improvements in the healthcare and consumer electronics arms, the company said. Total turnover was up 5% compared with the same quarter in 2011 at €5.8bn. Philips posted a loss of €1.3bn in the 2011 second quarter, due to a major write-off.
Savings generated by the Accelerate programme now stand at some €176m and will reach €400m in the second half, the company said.
‘Overall, the cost-saving initiatives are on track, resulting in improved operational performance across the group compared to the previous year,’ Houten said in a statement.
Nevertheless, ‘there is no denying that the global economy is weaker now than it was just three months ago, especially in Europe, which accounts for approximately 25% of our revenue,’ he said.