Philips Says Lifestyle Goods Boost Profits

July 19, 2010
Emerging markets sales increased 29% which represents 34% of total sales

Products for lifestyle and lighting, and emerging markets, helped electrical equipment and electronics giant Philips to boost quarterly net profit six-fold, the company said on July 19.

Net profit for the second quarter rose to 262 million euros (US$340 million). This was a rise from 45 million euros in the same period last year and from 201 million euros in the first quarter of this year.

Philips said its profit was based on a 12% rise in sales on a 12-month comparison to $6.19 billion.

Sales of consumer lifestyle electronics, like television sets, electric shavers or rechargeable toothbrushes, rose by 20% compared to the second quarter of 2009.

Sales in lighting for the home, car, street and business grew by 13%, while sales of healthcare product like defibrillators, X-ray machines and CT scanners, grew four percent.

"Philips delivered another strong quarter, with good top-line growth and strong profitability in all three operating sectors," Philips president Gerard Kleisterlee said.

"Sales performance was especially strong in emerging markets." Emerging markets sales growth accelerated to 29%, now representing over one-third or 34% of total sales, said the company's quarterly report.

For the rest of the year, Philips expected sales to moderate, the statement said, partly due to the "continued but slow recovery in the U.S .and Europe."

TV sales were expected to mellow after the football World Cup played in South Africa in June and July.

"We will continue to drive further improvements, including, where necessary, taking the required actions to offset the effects of rising commodity and component prices," said the report.

Philips said it would launch a series of new products soon, including its "most advanced premium electric shaver to date", and coffee appliances and blu-ray (optical disk) players "that deliver simplicity to consumers."

Philips employs more than 116,000 people in more than 60 countries.

Copyright Agence France-Presse, 2010

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