Philips shake up boosts profits

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Philips shake up boosts profits

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Philips said its latest quarterly net profit – at 281 million euros – was nearly triple what it made a year ago.

That follows two years of restructuring by the healthcare equipment, lighting and consumer appliances maker.

The Dutch group has shaken up its product range and sold off much of its consumer electronics business.

The television, audio and video operations Philips got rid of were struggling to compete with lower-cost Asian manufacturers.

It has instead focused on more profitable home appliances such as soup blenders and electric toothbrushes, as well as lighting for homes and offices, and medical equipment.

The new policy includes expanding into emerging markets such as India, Russia, China, Indonesia and much of Africa to counter slowing European and US sales.

Chief Executive Frans van Houten is not taking anything for granted. In a statement he said: “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.”