Amsterdam - Profit for the Dutch electronic company Philips was higher than expected in the second quarter of 2008, the company announced on Monday.
Total profit before interest, taxes and amortization (EBITA) amounted to 413 million euros (656.85 million dollars), higher than the 368 million euros (616.66 million dollars) analysts had forecast.
Primarily responsible for the good results was the lights division. Company results of Philips Lighting amounted to 202 million euros (321 million dollars), which is 40 million euros (63.59 million dollars) more than in the same quarter in 2007.
The good results were partly caused by American lights manufacturer Genlyte, which Philips took over last year.
With 195 million euros (310 million dollars), company results of the medical division were lower than expected. The division had to spend some 35 million euros (55.65 million dollars) for the takeover and integration of American Respironics.
Philips Consumer Lifestyle, which manufactures televisions, electric toothbrushes and coffee makers, did better than expected.
Company results were 83 million euros (106 million euros last year), from which reorganization expenses Philips spent to improve its profitability, have already been deducted.
Net income was 720 million euros (1.144 billion dollars), substantially lower than last year, when net profits amounted to 1.57 billion euros (2.49 billion dollars).
However, Philips argues that due to one-time results and expenses, it is difficult to compare both years.
Turnover increased from 6 to 6.5 billion euros (10.33 billion dollars). Due to takeovers, turnover increased most (23 per cent) in North-America. In developing markets, turnover increased with 16 per cent.
Philips says it still aims to achieve the goals set for its strategic plan Vision 2010. Among others, this includes a growth of 6 per cent and profit margins of 10 to 11 per cent in
2010.
In the second quarter of 2008, profit margins were 6.4 per cent, similar to the same period last year. (dpa)