Philips back in black; reports 200 mn euros Q1 profit

Philips back in black; reports 200 mn euros Q1 profit

The entity, hit by the global financial meltdown, had incurred a loss of 59 million euros in the year-ago period, it said in a statement today.

Helped by robust sales in different sectors and good showing in emerging markets, including India, the firm's first quarter revenues climbed 12 per cent to 5.68 billion euros.
In the first three months of 2010, revenues from healthcare division rose five per cent to 1.82 billion euros, mainly due to good growth at customer services and  clinical care systems.

Further, revenues at consumer lifestyle unit and lighting division jumped to 1.94 billion euros and 1.81 billion euros, respectively.Philips' sales in emerging markets went up 20 per cent to 1.73 billion euros in the first quarter of 2010.

"The emerging markets reported strong double-digit growth, led by the key emerging markets of China and India, predominantly driven by lighting," the statement said.
The Dutch group said it has entered into a five-year brand licensing agreement under which Videocon Industries would assume responsibility for the company's consumer television activities in India.

"This move is consistent with Philips' objective to bring the television business back to structural profitability," the statement noted.Philips Electronics President and CEO Gerard Kleisterlee said that economic uncertainty remains high and consumer confidence low.
According to Philips, it would continue to execute rationalisation initiatives, entailing restructuring charges of 100-125 million euros in the second quarter.

"Our television business is likely to benefit from peak demand generated by soccer's World Cup ... We will step up our marketing investments in the second quarter, particularly at Consumer Lifestyle," it added