Business

Philips reports 18% profit rise on strong health sales

Image copyright Patrik Stollarz
Image caption Net profit surged 18% at Philips in the third quarter

Electronics firm Philips has seen third-quarter profits jump after posting strong sales in its health businesses.

The Dutch firm said net profit surged 18% year-on-year to €383m (£340.7m) while sales edged up 1% to 5.9bn euros.

It said it was maintaining its forecasts for the full year as it expected to report a strong final quarter.

But the firm remained concerned about "volatility" in its core markets.

Philips was once the largest manufacturer of lighting in the world, but in 2014 announced it would sell off its lighting division in the face of mounting competition in emerging markets.

Philips Lighting listed on the Amsterdam stock exchange at the end of May - with Philips retaining a 71% stake - but the firm now makes most of its sales from medical equipment.

According to the Amsterdam-based company, third-quarter revenue grew 5% in its core health technology portfolio while orders increased by 8%.

Sales were strongest in China, Latin America and central and eastern Europe, but flat in Western Europe and up only 1% in North America.

The firm, which was founded in the southern Dutch city of Eindhoven in 1891, employs 112,000 people worldwide.

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