The FINANCIAL — Philips Electronics NV (PHG: News ) reported on October 18 that its profit for the third quarter more-than tripled from last year, mainly driven by strong results from healthcare and Lighting divisions as well as emerging markets.
Meanwhile, the Dutch consumer electronics company said it is cautious on revenue growth in the fourth quarter, which however, is projected to be a seasonally strong quarter.
"The Amsterdam, the Netherlands-based company's third-quarter net income attributable to shareholders surged to 524 million euros or 0.55 euro per share from 174 million euros or 0.19 euro per share in the prior year quarter, driven by substantially higher earnings in the operating sectors, notably Lighting and Healthcare, as well as higher financial income," Philips Electronics reports.
In the quarter, financial income was 81 million euros, compared to prior year's expenses of 44 million euros, mainly on a gain of 154 million euros on the sale of the remaining stake in NXP to the Philips UK pension fund.
In the quarter, restructuring and acquisition-related charges were 40 million euros, compared to last year's 125 million euros.
Quarterly sales grew 10% to 6.16 billion euros from 5.62 billion euros a year earlier. On a comparable basis, sales rose 1%. The company noted that currency effects had an 8% favorable impact of sales. Excluding Television, total comparable sales growth was 4%.
In its preceding second quarter, the company's attributable net income was 259 million euros or 0.27 euros per share, and sales were 6.19 billion euros.
Commenting on the results, Gerard Kleisterlee, President and Chief Executive Officer said, "In a still fragile economic environment, with weak consumer markets in the developed economies, we posted sales growth of 10% nominal and 1% on a comparable basis. Our continued progress in the third quarter confirmed that we are on the right track to become a leading company in health and well being as outlined in our strategic plan, Vision 2015."
Segment-wise, Healthcare sales grew 14% to 2.07 billion euros from prior year's 1.82 billion euros, while sales growth was 4% on a comparable basis, driven by single-digit growth in all businesses, except a slight decline in Imaging Systems.
Consumer Lifestyle sales for the quarter edged up 1% on a reported basis to 2.09 billion euros from last year's 2.07 billion euros, despite weak demand in some of its markets. Meanwhile, sales dropped 5% on comparable basis, as strong sales at Health & Wellness, Personal care and Domestic Appliances were weighed down by lower sales in rest of the sector.
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