Dutch medical and consumer electronics giant Philips reported on Oct. 13 a 7.8% rise in third-quarter earnings owing partly to the sale of its remaining stake in the world's largest chip maker,Taiwan Semiconductor Manufacturing Company (TSMC). The company said third-quarter net profit amounted to 357 million euros (US$484 million).
While sales in its health care and lighting businesses rose 5% and 6% respectively, consumer lifestyle sales dropped 600 million euros from 3.2 billion euros a year ago. The company this was partly due to a decision to pull out of a number of non-viable television markets, including Australia and New Zealand.
"While Philips too cannot isolate itself from increasingly adverse economic circumstances, it is encouraging to see that the portfolio we have built over the past few years does indeed show the resilience we expected from it," Philips chief executive Gerard Kleisterlee said.
In the currently uncertain economic environment, the company has taken steps to safeguard profitability, he added. "We will rigidly manage cost and prices, further shift investments towards emerging markets and clear growth areas, and accelerate the ongoing optimisation programs in all sectors."
Copyright Agence France-Presse, 2008