Philips records three-fold earnings rise

October 18, 2010 | 17:46

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THE HAGUE, October 18, 2010 - Dutch electronics giant Philips reported Monday a three-fold rise in third-quarter net income to 524 million euros ($728 million), due partly to rising emerging market sales.

"We ... continued on our growth path in emerging markets, with 19 per cent nominal and seven percent comparable sales growth," Philips president Gerard Kleisterlee said in a statement.

"This means that we now generate more than one-third of our sales in these markets."

The income statement was boosted by 154 million euros from the sale of Philips' remaining stake in semi-conductor manufacturer NXP to the Philips UK pension fund.

Philips said comparable sales for mature markets, "in a still fragile economic environment", declined by one percent.

Overall sales grew from 5.6 billion euros a year ago to 6.2 billion euros, with a four percent increase in comparable sales figures for healthcare products and seven percent in lighting, the company said.

For consumer lifestyle products, comparable sales were five percent lower than a year ago, with comparable sales of televisions 12 per cent down.

Philips said earnings before interest, tax and amortisation (Ebita), amounted to 648 million euros or 10.5 per cent of sales -- 304 million euros higher than a year ago.

"Given the uncertain economic climate and fragile consumer confidence in some of our markets, we take a cautious view on revenue development in Q4 2010," Philips said.

"We will continue to drive growth initiatives and operational improvements to further exceed the targeted Ebita, adjusted for restructuring and acquisition-related charges, of 10 per cent for the full year 2010."

For the first nine months of the year, the figure was 10.1 per cent -- up from 6.1 per cent in 2009.

Philips employs more than 118,000 people in more than 60 countries.

(AFP)

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