Philips Electronics reports €200M profit in Q1, versus loss of €59 million a year ago

Philips turns to €200M profit in Q1

AMSTERDAM — Royal Philips Electronics NV on Monday reported a strong rise in sales and a return to profit in the first quarter, thanks to a good performance by its lighting division. Philips is the world’s largest lighting maker.

The company said net profit was €200 million ($270 million), from a loss of €59 million in the same period a year ago. Sales rose 12 percent to €5.68 billion.

Analysts polled by the company had estimated net profit at €109 million.

The company said in a statement Monday that sales at its lighting division were up 18 percent, while its consumer product arm — Europe’s largest maker of consumer electronics — posted a sales increase of 11 percent. Sales at its health care arm, which makes medical imaging equipment, grew 7 percent.

“While our Q1 results of course compare very favorably with the recession-impacted Q1 2009, they are…(also) at a level that we have not seen before in a first quarter,” said Chief Executive Gerard Kleisterlee in a statement.

“Nevertheless, economic uncertainty remains high and consumer confidence low.”

Each of the divisions showed a major rebound in operating profit, with lighting turning from a €36 million loss to a €204 million profit. Philips said sales of energy-efficient LED bulbs have tripled, while its automotive lights and fixtures have benefited from inventory restocking in Europe.

Consumer products turned from a €53 million operating loss to a €157 million profit, with double-digit sales growth in emerging markets and single digit growth in Western Europe. Philips makes a wide range of electronics and household appliances, notably television sets and shavers. It said Monday it is launching a range of accessories for Apple’s iPad.

The company also noted it expects television sales to benefit strongly from demand caused by the World Cup this summer in South Africa.

At health care, operating profit grew from €1 million a year ago to €103 million. Bookings increased in the United States for the first time since the downturn began in 2008.

Philips noted it booked a one-time gain of €81 million on the sale of shares in LG Display and a €48 million impairment charge on its 19.9 percent stake in semiconductor maker NXP BV.

NXP announced last week it intends to file for a €1.1 billion initial public offering in the United States.