Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Philips second-quarter net profit up on higher consumer, lighting margins

Published 27/07/2015, 07:12
© Reuters. A Philips logo is seen at Philips headquarters in Amsterdam
PHG
-

FRANKFURT (Reuters) - Philips (AS:PHG), the lighting, consumer and healthcare products company, said on Monday its second-quarter net profit rose to 274 million euros (194 million pounds) on sales growth at its healthcare unit and margin improvements at its consumer and lighting businesses.

The company said net profit rose 12.8 percent to 274 million euros in the second quarter from 243 million euros in the same period a year earlier.

That was above the average of 107 million euros in a Reuters poll, with individual estimates of nine analysts ranging from 55 million euros to 142 million.

Margin improvements at Philips' healthcare business were largely offset by the strong dollar and investments, while operating margins at its consumer and lighting businesses improved as a result of restructuring measures.

Chief Executive Frans van Houten said in a statement he was encouraged by Philips' improvements but added that he was increasingly concerned about the global macro-economic environment "particularly in China, Russia and Latin America."

Still, the maker of consumer goods like shavers, toothbrushes and coffee makers as well as healthcare equipment such as CT scanners and patient monitoring systems, expects modest sales growth this year and "continued operational performance improvement in 2016."

Philips is planning to sell its lighting division, the world's largest lighting maker, via a sale or a stock market flotation.

The company said on Monday that it estimates the cost for this process to be 200-300 million euros this year, lower than the 300-400 million its expected previously.

It said it expects to book another 200-300 million euros, including restructuring costs, next year.

© Reuters. A Philips logo is seen at Philips headquarters in Amsterdam

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.