Dutch healthcare, lighting and consumer appliances group Philips today reported a near tripling in its third-quarter net profit, thanks to improvements across the group after two years of rationalisaton.
Net profit climbed to €281m from €105m a year ago, while sales rose 3% on a comparable basis to €5.62 billion.
Analysts in a poll commissioned by Reuters had forecast a net profit of €209m on sales of €5.74 billion.
"We remain committed to reaching our financial targets this year. However, ongoing headwinds in the global economy are expected to continue to affect sales growth in the coming quarters," chief executive Frans van Houten said in a statement.
All three businesses showed strong improvements in operating results from a year ago.
Over the past two years Philips has shaken up its product range and expanded in the bigger emerging markets such as India, Russia, China, Indonesia and much of Africa, to reduce its dependence on the US and European economies.
It has sold off much of its consumer electronics business, including its television, audio and video operations where it was struggling to compete with lower-cost Asian manufacturers, and focused on more profitable home appliances such as soup blenders and electric toothbrushes, as well as lighting for homes and offices, and medical equipment.
Philips also said its €1.5 billion share buyback, announced last month, would start today.
