Philips’s Q2 profits higher than expected
The electronic company’s positive 2nd quarter results of EUR 413 million were higher than profit forecasted by analysts.14 July 2008
AMSTERDAM - Profit for the Dutch electronic company Philips was higher than expected in the second quarter of 2008, the company announced on Monday.
Total profit before interest, taxes and amortisation (EBITA) amounted to EUR 413 million, higher than the EUR 368 million analysts had forecast.
Primarily responsible for the good results was the lights division. Company results of Philips Lighting amounted to EUR 202 million, which is EUR 40 million more than in the same quarter in 2007.
The good results were partly caused by American lights manufacturer Genlyte, which Philips took over in 2007.
With EUR 195 million, company results of the medical division were lower than expected. The division had to spend some EUR 35 million for the takeover and integration of American Respironics.
Philips Consumer Lifestyle, which manufactures televisions, electric toothbrushes and coffee makers, did better than expected.
Company results were EUR 83 million, from which reorganisation expenses Philips spent to improve its profitability, have already been deducted.
Net income was EUR 720 million, substantially lower than last year, when net profits amounted to EUR 1.57 billion.
However, Philips argues that due to one-time results and expenses, it is difficult to compare both years.
Turnover increased from EUR 6 to EUR 6.5 billion. Due to takeovers, turnover increased most (23 percent) in North-America. In developing markets, turnover increased with 16 percent.
Philips says it still aims to achieve the goals set for its strategic plan Vision 2010. Among others, this includes a growth of 6 percent and profit margins of 10 to 11 percent in 2010.
In the second quarter of 2008, profit margins were 6.4 percent, similar to the same period in 2007.
[dpa / Expatica]