Dutch group Philips Electronics reported third-quarter operating profit above estimates as it met its full-year margin target early in the face of uncertain revenue developments.
The world's biggest lighting maker had earnings before interest, tax and amortisation (EBITA) of €648 million, compared with the average forecast of €535 million.
Philips, which has been cutting costs and jobs to cope with the recession, said it would look to further exceed its 10 per cent adjusted EBITA margin target for the full-year after it reached 10.1 per cent for the first three quarters.
But the company, which competes against the healthcare and lighting units of General Electric and Siemens, took a cautious view on revenue development for the fourth quarter given the uncertain economic climate and fragile consumer confidence.
Philips said, however, it still expects the fourth-quarter to be a seasonally strong quarter.
Philips has beaten earnings expectations in recent quarters, but the company warned in July that second-half sales growth would slow to mid-single-digit levels, given sluggishness in the economies of Europe and the United States.
Generic Electric heightened fears about the recovery last week when it reported a sharper-than-expected drop in revenue on slack demand for heavy equipment.
Philips shares have gained 5.5 per cent in the two weeks leading up to its results, more than double the 2.5 per cent rise in the STOXX Europe 600 Personal and Household Goods index.
Reuters