Higher sales and job cuts boost profits at Philips

Philips Electronics reported fourth-quarter profits ahead of market estimates, helped by demand for medical equipment and job cuts.

The Amsterdam-based company said yesterday earnings rose 50 per cent to €875 million, beating the €866 million previously estimated.

Sales gained 6.7 per cent to €7.16 billion.

Chief executive Frans van Houten is working through a company-wide overhaul to save €1.1 billion that includes cutting 6,700 jobs and eliminating management layers to accelerate decision-making.

The Philips veteran, now almost two years at the company’s helm, is also moving the manufacturer into high-margin areas such as lighting products that save energy and health-and-wellness products, and away from a consumer- electronics past. – (Bloomberg)