PHILIPS ELECTRONICS, Europe’s biggest consumer electronics maker, said some of its key markets are primed for an upturn in sales, although any growth this year would likely be driven by government spending programmes.
The Dutch conglomerate – the world’s biggest lighting manufacturer – surprised industry experts yesterday with a return to profit in the second quarter, helped by cost cuts.
Philips said it expected a better second half and said some of its markets, notably in emerging economies, might be bottoming out – although with global economic data sending mixed signals, chief financial officer Pierre-Jean Sivignon cautioned against hopes of an early consumer-led end to the slump.
“If I had to guess, I would say it [growth] would come from the countries with stimulus packages, because we know those plans are for real,” Mr Sivignon said.
Quarterly earnings before interest, taxes and amortisation (Ebita) reached €118 million, easily beating forecasts, which had projected a loss, as the healthcare division shone.
Its quarterly results were boosted by a strong performance by the healthcare unit, which competes against General Electric and Siemens and which posted Ebita of €158 million, where analysts had expected €96 million. – (Reuters)
