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.