The FINANCIAL — Philips Electronics NV on July 13 posted a net profit for the second quarter, as margins improved due to cost savings and insurance recoveries and legal settlements, but said it remains cautious on outlook.
"Net profit for the three months ended June 30 was €45 million, compared with a net profit of €732 million in the same period last year — but against analysts' expectations for a loss," the Wall Street Journal informs.
Earnings before interest, taxes and amortization, analysts' preferred measure of operating performance, came in at €118 million compared with a €396 million profit a year ago. The figure includes €148 million in charges. Analysts had expected Ebita to come in at a €69 million loss.
The Amsterdam-based company posted a 19% drop in sales during the quarter, in line with expectations.
Chief Executive Gerard Kleisterlee said he remains cautious about the economy and the markets it operates in and will not shy away from further cost-cutting measures.
Philips previously said it targets over €500 million in annual cost savings by year-end.
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