Philips holds firm on 2016 outlook
ELETRONICS giant Philips posted a jump in third-quarter net profit on robust sales in its health businesses, where the Dutch company has shifted its focus.
Philips said it was maintaining its forecasts for the full year as it expected a good last quarter but remained concerned about volatile markets.
Net profit surged by 18 percent to 383 million euros (US$417 million) in the third quarter, while sales inched up by 1pc to 5.9 billion euros, the company said.
Philips in 2014 announced it was selling off its lighting business – a mainstay for more than a century – to focus more on medical equipment, where margins are stronger and less vulnerable to competition from emerging markets.
Philips Lighting successfully listed on the Amsterdam stock exchange at the end of May and Philips currently holds a majority 71pc share.
Philips said third-quarter sales in its core health technology business grew by 5pc with order intake up 8pc on a currency comparable basis.
“Our outlook for 2016 remains unchanged, as we expect further earnings improvements in the fourth quarter of the year,” chief executive Frans van Houten said.
The company said sales in western Europe were stagnant, grew by 1pc in North America, but were strongest in China, Latin America, and central and eastern Europe. –