Q3 profits treble but electronics giant Philips cautious

Electronics retailer Philips has today exceeded market forecasts by posting bumper third quarter results but said it remains cautious about the short-term.

The group’s cost-cutting programme meant it made a profit of €174 million (£161.4 million) in the July and September period - more than treble the €57 million in the same quarter a year ago.

However, sales at the world’s largest lighting maker, fell 11% compared with a year ago to €5.6 billion.

The company, which is in the top three for hospital equipment and is Europe’s largest consumer electronics producer, saw its shares rise to a one-year high following the news.

In a statement, the company said: “While encouraged by the positive development in sales and profitability during the third quarter, we remain cautious about the short-term outlook in the absence of structural recovery in the majority of our end-markets.”

In January, the electronics giant announced it was axing 6,000 jobs globally as consumers continue to tighten their purse strings and delay buying non-essential items.

The headcount reduction will see it realise cost savings of €600 million next year.

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