AMSTERDAM (AP) -- Improved sales of health care products and LED lighting at Royal Philips Electronics NV combined with cost-cutting measures to help the electronics giant post rises in revenue and net profit in the second quarter, the company announced Monday. <\/p>\n
Philips said sales rose to 5.9 billion ($7.2 billion) in the second quarter from 5.2 billion in the same period a year ago. <\/p>\n
Net profit was 167 million ($203.7 million), rebounding from a 1.3 billion loss in last year's second quarter that was hit by a writedown on the value of assets. <\/p>\n
The company said that, excluding impairment, profit was 127 million ($154.94 million) higher than the same period a year ago. <\/p>\n
The company said its cost-cutting program has saved 176 million ($214.7 million) so far this year. <\/p>\n
Philips shares shot up more than 8 percent to 17.56 ($21.42) on the news shortly after trading began in Amsterdam. <\/p>\n
Philips made its name selling light bulbs and is now looking to new, more energy efficient, lights to boost sales and profits. LED light sales grew 37 percent compared to the second quarter in 2011 and now account for 20 percent of the company's 2Q lighting sales of just over 2 billion ($2.44 billion). <\/p>\n
Second-quarter sales at the company's health care division rose from 2.1 billion last year to 2.4 billion ($2.9 billion). <\/p>\n
Philips sounded a note of caution about the effects of the financial crisis, particularly in its European markets. <\/p>\n
\"There is no denying that the global economy is weaker now than it was just three months ago, especially in Europe which accounts for approximately 25 percent of our revenue,\" CEO Frans van Houten said. <\/p>\n<\/p>\n
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Philips revenue, profit rise on health care gains<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" AMSTERDAM (AP) -- Improved sales of health care products and LED lighting at Royal Philips Electronics NV combined with cost-cutting measures to help the electronics giant post rises in revenue and net profit in the second quarter, the company announced Monday. Philips said sales rose to 5.9 billion ($7.2 billion) in the second quarter from 5.2 billion in the same period a year ago. Net profit was 167 million ($203.7 million), rebounding from a 1.3 billion loss in last year's second quarter that was hit by a writedown on the value of assets. Continue reading