Philips Profits As Restructuring Pays Off
Dutch lighting and consumer electronics firm Philips has seen earnings more than double to 170 million euros (£138m) thanks in part to its restructuring programme.
Boosted by higher sales and cost cuts - including the disposal of its loss-making television business - third quarter net profits are up 94 million euros (£76m) on the same period a year ago, while sales have increased by 3.4% to 6.13 billion euros (£5bn).
The firm also announced savings of 306 million euros (£249m) since the fourth quarter of 2011.
Philips shares rose 2.7% to 19.52 euros (£15.89) after the results were published.
The company, which employs around 122,000 people globally, is known for its televisions, small appliances and light bulbs, but has started to develop its activities in the medical equipment sector with the production of hospital scanners.
Since taking the helm last year, chief executive Frans van Houten has reset financial targets, cut thousands of jobs and replaced his entire top executive team in an effort to turn around the company which lost 1.3 billion euros (£1.05bn) in 2011.
Despite the upbeat trading performance, he remains cautious about the company's growth prospects.
"The world has become a lot riskier with three headwinds simultaneously, (namely) Europe, slowing growth in China and some uncertainty in the US," he said.
Since July, Mr van Houten has been considering options for Philips' low-margin audio and video equipment business.
He reiterated the unit is a "business in transition," but declined to say whether a deal to split it off, similar to the one he cut with China's TPV Technology Ltd for Philips TVs, is in the works.