By Maarten van Tartwijk
AMSTERDAM--Royal Philips NV said Monday that second-quarter net
profit rose 13% as the Dutch electronics company benefited from a
sharp increase in sales prompted by a weaker euro.
Philips said net profit for the three months ended June 30 was
EUR274 million ($301 million), up from EUR243 million in the same
period a year earlier. Sales rose 20% to EUR5.97 billion, up from
EUR4.97 billion a year ago. The results beat analysts' expectations
and were fueled by the weaker euro against other global currencies,
which provided a sharp boost to sales. Comparable sales, which
exclude the impact of currency shifts, rose 3%, in part due to
improvements in North America, Central and Eastern Europe and
India.
The Amsterdam-based company, which makes everything from
hospital scanners to coffee machines, warned that it is
increasingly concerned about the global economy, largely due to a
slowdown in China, Russia and Latin America. For 2015 it continues
to expect modest sales growth, it said.
Philips reiterated that it aims to exit its 124-year-old
lighting business in the first six months of 2016, most likely
through an initial public offering. The company said costs related
to the separation of the division will total EUR200 million to
EUR300 million this year, lower than its previous estimate of
EUR300 million to EUR400 million.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
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