In their latestest financial results Philips net income rose to $2 billion, or 1.30 euros a share, from 680 million euros, or 59 cents, a year earlier. Sales climbed 3.8 percent to 8.37 billion euros, Philips said today. Analysts had predicted a profit of 1.23 billion euros, the median of 10 analysts estimates.
Philips forecast "robust'' growth in sales of fluorescent lamps and light-emitting diodes used to illuminate shops and office buildings, as governments around the world persuade consumers to switch to energy-saving bulbs. Chief Executive Officer Gerard Kleisterlee has sold most of Philips' chip division and Taiwan Semiconductor Manufacturing Co. shares to pay for takeovers in lighting, medical equipment and appliances.
"The results are pretty good, consistent and more stable without the semiconductors,'' said Jack Neele, who manages 100 million euros including Philips shares at Robeco NV in Rotterdam. "Philips has to prove the new strategy works and, according to these figures, that will be the case in the coming quarter.''
Philips proposed paying a dividend of 70 cents a share for 2007, a 17 percent increase from the previous year.
Philips fell 20 cents, or 0.8 percent, to 24.18 euros in Amsterdam trading. The shares have lost 18 percent this year, in line with the benchmark Amsterdam Exchanges Index.
