Philips sales rise 5%, despite 'economic headwind'

Monday 22 October 2012

Dutch electronics giant Philips booked a 5% increase in sales in the third quarter of this year, while net profit rose almost €100m to €170m.

Sales reached €6.13bn, compared with €5.39bn in the year-earlier period, better than analysts consulted by news agency Reuters had expected.

The profit margin rose to 9.2%, close to the company’s 2013 target of between 10% and 12%.

Job cuts

Philips’ medical division performed best, with a 7% rise in sales and profit margin of 13.5%. Lighting saw sales rise 4% with a profit margin of just 2.2%.

CEO Frans van Houten has already announced a range of measures to boost profitability, including the loss of 2,200 jobs.

‘We continue to experience strong economic headwinds on a global scale, which affect growth going forward,’ Van Houten said in a statement. Nevertheless, the Accelerate efficiency programme is ‘helping to mitigate some of these pressures’, Van Houten said.

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