Philips Reports Higher Q3 Profits

By Staff -- TWICE, 10/27/2008

AMSTERDAM, THE NETHERLANDS — Philips Electronics NV reported a higher net profit corporately, but reported further restructuring involving its CE business.

Net profit for the company for the quarter was up 7.8 percent to $479 million, from $444.1 million in the previous year's third quarter.

Sales were $8.49 billion, down from the previous year's $8.67 billion.

In a prepared statement Gerald Kleisterlee, president/CEO, said, “While Philips ... cannot isolate itself from increasingly adverse economic circumstances, it is encouraging to see the portfolio that we have built over the past few years does indeed show the resilience we expected from it.”

The consumer lifestyle section which includes CE and television, reported sales were down 8 percent to $3.54 billion. The same group is home to Philips' health and wellness category and its domestic appliance category, both of which reportedly did well during the quarter.

Earnings for the group were $127.5 million, down from the previous year's $229.4 million, due to $81.8 million in television related restructuring charges.

However Kleisterlee said the consumer lifestyle group is “the sector most prone to swings in consumer demand. [It] was able to improve its EBITA margin excluding restructuring to 5.9 percent of sales as a result of the sector's relentless focus on profitability.”