Philips 3Q earnings fall on semiconductor unit sale
It has been reported that Royal Philips Electronics NV have announced a fall in third quarter earnings, reflecting the sale of the company's semiconductor arm a year ago.
Philips said sales and operating profits of its remaining operations were higher, due to growth at its lighting and domestic appliance divisions, and lower overhead costs.
Net profit was €331 million (US$470 million), down from €4.24 billion. Last year, Philips sold an 80.1% stake in its computer chip division to private equity investors for €6.4 billion.
Third quarter sales were €6.52 billion (US$9.25 billion), up 3.3% from €6.31 billion. Philips said operating profit was €385 million (US$546 million), up from €25 million a year ago.
At Philips' medical equipment division, which vies with lighting as its most profitable, operating profits fell 9% to €151 million (US$214 million), which the company said was due mostly to a decrease in spending on imaging machines by U.S. hospitals.
