Dutch electronics giant Philips returned to profit in the first quarter this year when net earnings reached an unexpected €9 million.
After posting a record loss in 2001 of €2.604 billion, analysts were expecting the group to report a first-quarter shortfall of between €152 and €444 million.
"It seems that the worst slump in recent business history is behind us now and that we begin to see the start of a new upturn in the business cycle," said Philips chief executive Mr Gerard Kleisterlee.
A company statement offered a cautious assessment of future prospects. "In general we see some of our markets strengthening and economic conditions around the world improving to a degree," it said.
Although the semiconductor and components divisions were expected to show further gains, markets for telecommunications, information technology and lighting would face continued difficulties, it said.
Sales in the 2002 first quarter came to €7.598 billion, a 7 per cent decline over the first quarter last year when markets were still healthy.
Philips said the fall in sales was mainly the consumer electronics, components and semiconductor sectors, whereas those in the medical systems, domestic appliances and personal care units gained ground.
AFP