By Robin van Daalen and Harm Luttikhedde
Of DOW JONES NEWSWIRES
AMSTERDAM -(Dow Jones)- Royal Philips Electronics NV (PHIA.AE) Monday posted an unexpected net profit for the third quarter, as lower sales were partly offset by cost savings and a one-time gain, but said it remained cautious in the absence of structural recovery in most of its end-markets.
Net profit for the three months ended September 30 was EUR174 million, up from a net profit of EUR57 million in the same period last year. Analysts had expected a EUR45 million net loss.
Earnings before interest, taxes and amortization, analysts' preferred measure of operating performance, came in at EUR237 million compared with a EUR133 million loss a year ago.
The figure includes EUR125 million in restructuring charges, offset by a EUR87 million gain due to the release of a provision for retiree medical benefits and a EUR30 million impairment reversal.
The Amsterdam-based company posted a better-than-expected 11% drop in sales during the quarter. Analysts had expected a 15.1% fall.
Philips shares have gained 31% in the last three months, outperforming the AEX which gained 28% in the same period, as cyclicals outperformed defensive stocks and many analysts upgraded Philips' rating and target price. Friday, Philips shares closed at EUR17.04.
-By Robin van Daalen, Dow Jones Newswires; +31 20 571 52 01; robin.vandaalen@dowjones.com