AMSTERDAM (AP) — Royal Philips Electronics NV, the maker
of electric shavers, light bulbs and medical imaging equipment, saw
earnings more than double in the third quarter, thanks to modest growth
at all its business lines as well as the disposal of its loss-making
television business.
Net profit rose to €169 million ($220
million) from €74 million in the same period a year ago, when Philips
booked a €54 million loss on televisions. Sales rose 3.4 percent to
€6.13 billion.
Philips shares rose 2.7 percent to
€19.52 in early trading Monday.
Despite
the upbeat trading performance, Philips CEO Frans van Houten said the
company is facing stiff "headwinds" with its biggest market, Europe, in
decline, China growing more slowly, and with the U.S. market showing
"more and more uncertainty related to elections and the so-called
‘fiscal cliff’."
Van Houten said the company’s best-selling new
products include a line of home cookers endorsed by celebrity chef Jamie
Oliver — the first of a product line they plan to introduce together;
docking stations for Apple and Android smartphones; and a combination
shaver/beard trimmer/hair-clipper "targeting young guys, to make sure
they convert to electric rather than wet shaving."
He said LED
lighting sales were up 50 percent year on year, with projects to
illuminate the San Francisco Bay Bridge, among others.
Nearly a quarter
of the lights Philips sells are now LEDs.
Because of the
transition to LEDs, Van Houten said the company, which is the world’s
largest lighting maker by sales, will have to get rid of some plants
that make traditional bulbs.
Philips has previously announced it plans to take around €300 million in
restructuring charges in the fourth quarter.
Philips’
performance differed strongly by geography. In mature economies, sales
of consumer products and lighting sales dipped, but sales of medical
imaging machines grew. In developing economies sales were up 10 percent
in all categories.
Copyright 2012 The Associated Press.
