Philips' Q2 net profit up 15% after listing lighting unit

Dutch electronics giant Philips yesterday posted a 15 per cent rise in net profit for the second quarter, just months after listing its lighting division separately on the Amsterdam bourse.

Net profit from its continuing operations leapt to €186 million (S$297 million) from April to June, compared with €161 million in the same period last year, the company reported.

Sales reached €4.3 billion, up some 4 per cent on last year, Philips said, highlighting that orders had also risen by 9 per cent.

Best known for the manufacture of light bulbs, electrical appliances and television sets, the company has gradually pulled out of these activities in the face of fierce competition from Asia.

It focuses now on high-end medical and health technology, as well as household appliances.

"I am pleased with the continued strong performance improvement of the diagnosis and treatment businesses, driven by the breadth of our innovative product portfolio," chief executive officer Frans van Houten said in a statement.

He added that the company, which employs more than 75,000 people in some 100 countries, stood by its "targets for the 2017-2020 period of 4-6 per cent comparable sales growth".

The group, founded in 1891, moved to list its Philips Lighting division, now known as Signify, on the Amsterdam Stock Exchange (AEX) in mid-2016. Signify was listed in the top-tier of the AEX in March this year.

AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on July 24, 2018, with the headline 'Philips' Q2 net profit up 15% after listing lighting unit'. Print Edition | Subscribe