Oct.22 - Philips Electronics beats earnings forecasts for the third consecutive quarter, boosted by cost cuts and higher sales, as overhaul of the company gathers pace. Ciara Sutton reports.
A drastic overhaul at Philips Electronics has gathered pace and appears to be paying off. The Dutch company beat earnings forecasts for the third consecutive quarter, boosted by cost cutting and higher sales. Philips has a wide range of products, from hospital scanners to electric toothbrushes, and coffee makers. Its third-quarter net profit more than doubled. Frans van Houten is CEO. (SOUNDBITE) (English) PHILIPS CEO, FRANS VAN HOUTEN, SAYING: "I've always said there is an enormous potential inside Philips. We are unlocking that potential as we speak but there is also more to come." Since taking the helm last year, van Houten has cut thousands of jobs and replaced his entire top executive team in an effort to turn around the company which lost 1.3 billion euros in 2011. But Van Houten remains cautious about the firm's growth prospects. (SOUNDBITE) (English) PHILIPS CEO, FRANS VAN HOUTEN, SAYING: "Where I am a bit concerned is the negative order intake growth in the United States where uncertainty around the elections is causing primarily hospitals to slow down on their orders. China with a GDP of 7-7.5 percent is also a bit weaker so the visibility in the market place is not very strong." Philips shares were trading up 4.6 percent by mid morning on Monday, the biggest gainer on the FTSEurofirst 300 of top European shares.