Philips Reports Higher Q3 Profits

-- TWICE, 10/13/2008 10:04:00 AM

Amsterdam, The Netherlands — Philips Electronics NV reported a higher net profit corporately, but reported further restructuring involving its consumer electronics 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, consumer electronics and television, reported sales were down 8 percent to $3.54 billion. The same group is home to Philips’ Health & Wellness and Domestic Appliance categories, 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.”