Philips net profit soars in third quarter

Net profit of Dutch conglomerate Philips soared in the third quarter of 2006, but its consumer electronics sales were depressed, according to results released by the company on Monday.

Philips net profit was 4.242 billion euros (5.315 billion U.S. dollars), almost tripling the net profit of 1.436 billion euros in the same quarter of last year.

The surge was almost entirely attributable to the sale of its semiconductors division.

Earnings per share jumped to 3.57 euros in the third quarter of 2006 from 1.14 euros a year before.

Philips sales increased by only 1 percent in the third quarter to 6.313 billion euros.

Adjusted for the effects of currency movements and consolidation changes, comparable sales increased by 5 percent, driven by strong growth in the high-margin medical systems, domestic appliance, and lighting divisions, said the company.

Sales in consumer electronics fell by 5.3 percent while medical systems sales grew by 2.8 percent. Domestic appliance and lighting sales jumped by 18.3 percent and 16.5 percent respectively.

"It was a good quarter for Philips. We were able to build on our strong performance in the first half of the year and deliver on our promise of continuing to grow our high-margin businesses. We also posted a significant year-on-year improvement in the performance of our main operating divisions," said Philips President and CEO Gerard Kleisterlee in a statement.

"The third quarter also marked a big step forward for Philips as we completed, as planned, the sale of a majority stake in our Semiconductors business. With our portfolio now more sharply focused on healthcare and lifestyle markets, we're increasingly well-placed to deliver sustainable, profitable growth from our strong innovation and technology base."

Source: Xinhua