Philips posts 80% jump in Q1 net profit

Dutch electronics giant Philips posted on Monday an annualised 80 percent leap in first-quarter net profit owing to one-off items and a small increase in sales. A Philips statement said that net profit jumped to 249 million euros ($329 million) in the three-month period, on sales that were four percent higher at 5.6 billion euros. Analysts polled by Dow Jones Newswires had forecast slightly weaker sales of 5.4 billion euros, and Philips shares shot higher in morning trades on the Amsterdam stock exchange. The net result was boosted by sales of Philips' US food subsidiary Sara Lee, the coffee machine brand Senseo and real-estate assets. Core earnings gained 37 percent from the same period a year earlier, to 438 million euros. Philips remained cautious regarding the outlook for 2012 as a whole however. Executive director Frans van Houten underscored "uncertainties in Europe, particulary in the healthcare and construction markets, and the slowing growth rate in the global économy." Philips also face restructuring charges stemming from a cost reduction programme unveiled last year. The company has been known for its televisions, small appliances and lightbulbs, but has begun to develop activities in the medical equipment sector. Shares in Philips showed a gain of 3.45 percent to 14.835 euros in morning trading in Amsterdam, while the AEX index of leading stocks was off by 2.33 percent overall.