Philips cost cutting leads to higher profit in Q3

Oct 21, 2013, 2:51 AM EDT

AMSTERDAM (AP) — Royal Philips NV, the world's biggest light maker, says third quarter profits rose on cost-cutting, as sales declined but margins improved.

The company has shed 4,900 jobs over the past year, more than 4 percent of its 114,300 total.

Net profit was 281 million euros ($384 million), compared to 105 million euros in the same period a year ago. Sales fell 3.4 percent to 5.62 billion euros, hurt by the strong euro.

In Philips' lighting division, strong sales of LEDs and fewer charges led to a 140 million euro profit, from a 14 million loss in the same period a year ago.

But CEO Frans van Houten warned of "continuing headwinds in the global economy," which he said would affect sales in future quarters without being specific.

YOU MIGHT ALSO LIKE