Amsterdam, The Netherlands - Royal Philips Electronics reported that its television operation turned a profit in the fourth quarter, ended Dec. 31, due to higher comp sales.
Philips reported that in its consumer lifestyle business, where television is based, television comp sales were up 7 percent but overall television sales were down 1.09 billion euros from the prior year's 1.13 billion euros.
Televisions were profitable for Philips for the fourth quarter for the first time, with quarterly profits of 29 million euros, compared with a loss of 154 million euros for the same quarter in the prior year.
Philips said its television performance was based on the comp-sales growth, a higher Ambilight share of sales "strict margin management, and a reduction of the fixed cost base," the company said in a statement.
In a prepared statement, Gerard Kleisterlee, president/CEO of Royal Philips Electronics, said, "Our consumer lifestyle sector managed to show sales growth, with television turning a profit and virtually all other businesses posting significantly higher earnings despite the absence of a material recovery in consumer confidence."
For the entire corporation in its fiscal fourth quarter net income was 260 million euros, compared with a loss in the prior year's final quarter of 1.18 billion euros.
Sales in the quarter were 7.26 billion euros, down from the prior year's final quarter's sales of 7.62 billion euros.