Philips, the world's third largest and Europe's largest consumer electronics maker, has reported its first quarterly profit in five quarters after cutting costs and selling shares.
The company posted a net profit of €42m compared to a loss of €1.35bn a year earlier, despite an 18% drop in sales to €6.5bn.
Philips however stated that low consumer confidence in major markets, if it continues, will impact consumer electronics. Philips reported low consumer spending in particular in Europe and Asia across all its consumer electronic markets.
The earnings include a one-time gain of €78m from selling shares in ASML and Vivendi Universal, the company said. The company also reduced costs by slashing thousands of jobs.
Philips reiterated a target for €1bn in cost savings across the group by 2004, with €338m already achieved to date.
