Philips profits soar by 79%



Technology giant Philips recorded profits which had jumped 79% in the last three months of 2010 as they took full advantage of the Christmas rush.

The group reported the profits and also pointed out that cutting costs had improved their net income, which rose to £395 million from £220 million the year before.

Despite the profits, which were bolstered by a strong performing healthcare and lighting division, Phillips warned that its TV making arm was a major concern as declining profits led to worries for the future.

The TV arms sales actually rose by 2%, although Phillips say this was only because of positive currency movements and without these sales would have fallen.

Europe saw the biggest fall in sales as 10% less was spent on Phillips products, but emerging markets in India and a strong performance in North America saw Phillips post their bumper profits.

Chief Executive Gerard Kleisterlee pointed out that Phillips, like all companies had used the recession to cut costs. “At the end of the day, it is the consumer that is going to bring the economy forward,” he said.

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