Philips, the lighting, consumer and healthcare products company, said on Monday its second-quarter net profit rose to €274 million ($301.6 million) on sales growth at its healthcare unit and margin improvements at its consumer and lighting businesses.
The company said net profit rose 12.8 per cent to €274 million in the second quarter from €243 million in the same period a year earlier.
That was above the average of €107 million in a
Margin improvements at Philips' healthcare business were largely offset by the strong dollar and investments, while operating margins at its consumer and lighting businesses improved as a result of restructuring measures.
Chief Executive Frans van Houten said in a statement he was encouraged by Philips' improvements but added that he was increasingly concerned about the global macro-economic environment "particularly in China, Russia and Latin America."
Still, the maker of consumer goods like shavers, toothbrushes and coffee makers as well as healthcare equipment such as CT scanners and patient monitoring systems, expects modest sales growth this year and "continued operational performance improvement in 2016."
Philips is planning to sell its lighting division, the world's largest lighting maker, via a sale or a stock market flotation.
The company said on Monday that it estimates the cost for this process to be €200-300 million this year, lower than the €300-400 million its expected previously.
It said it expects to book another €200-300 million, including restructuring costs, next year.