Philips holds firm on 2016 out­look

The Myanmar Times - - International Business -

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. –

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