Philips trumps analysts loss estimates, posts quarterly profit
14 Jul 2009
Royal Philips Electronics NV, Europe's largest maker of consumer electronics has reported a quarterly profit belying analysts' predictions of a loss and said that second-half sales may be higher than the first six months.
The Amsterdam-based company in a statement today said that net income in the quarter fell to €44 million or 5 cents a share from €732 million or 72 cents a year earlier. Analysts had forecast a loss of €122.5 million euros.
According to analysts the positive surprise was in the costs, but it is company specific and cannot be translated to other companies.
One-time gains related to insurance recoveries and legal settlement accounted for € 90 million net income while earnings before interest, taxes and amortization slid to 112 million euros down from 296 million in the year-earlier period.
The company' shares rose around 6 per cent trading 4.9 per cent higher at €13.59 giving the company a market value of €12.6 billion.
Sales were down 19 per cent to €5.23 billion missing the estimated median mark of €5.32 billion.