13 Oct 2009

Shares rise after Phillips reports higher profit

1:47 pm on 13 October 2009

Shares in Philips rose by more than 6% after profits trebled to €174 million ($US256 million) in the three months to September compared to €57 million in the same period a year earlier.

Like its rivals, the giant Dutch electronics group has been hit hard by the global downturn and it attributed the improved result to cost cutting, including shedding 6000 jobs this year.

The BBC reports sales fell 11% to €5.6 billion as demand lagged for consumer electronics and high-end health care equipment.

Chief financial officer, Pierre-Jean Savignon says there are few signs of recovery in most of its markets.

Standard & Poors analyst Robert Quinn says Phillips has shifted its reliance on low margin semiconductor and consumer electronic equipment to high margin sectors such as medical equipment.