Philips reports six-fold rise in profits

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Dutch electrical equipment and electronics giant Philips reported a six-fold rise in net profit to 262 million euros (340 million dollars) for the second quarter on strong sales in developing countries.

Up from 45 million euros a year earlier and 201 million euros in the first quarter of this year, Philips said its profit was based on a 12 percent rise in sales from a year ago to 6.19 billion dollars.

"Sales performance was especially strong in emerging markets," Philips president Gerard Kleisterlee said in a statement.

"Emerging markets sales growth accelerates to 29 percent, now representing over one third of group sales," added the company's quarterly report.

Sales grew in all sectors of the group's activities, especially in consumer lifestyle electronics which rose by 20 percent compared to the second quarter of 2009, while lighting sales grew by 13 percent, it said.

Philips said its earnings before interest and tax (EBIT) grew 50-fold to 404 million euros from eight million euros in the second quarter of 2009.

"It is encouraging to see that our performance continues to improve despite ongoing weakness in many global markets and economic uncertainty," said Kleisterlee.

For the rest of the year, Philips expected sales to moderate, the statement said, partly due to the "continued but slow recovery in the US and Europe".

For the first six months of the year, the company said its net profit rose to 463 million euros from a loss of 12 million euros in the same period the year before.

Philips employs more than 116,000 people in more than 60 countries, manufacturing medical equipment and televisions, among other things.

© 2010 AFP

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