Recovering sales of chips and consumer electronics helped Philips Electronics report strong quarterly profit today, and it forecast sales and earnings would rise in the second half of the year.
Europe's top consumer electronics maker said its second-quarter net profit jumped to a better-than-expected €616 million from €42 million a year ago, as sales rose 11 per cent to €7.28 billion.
Philips, whose shares were up 0.85 per cent at €21.24 in Amsterdam by 8.21 a.m., had been expected to book net profit of €521 million for the quarter.
Sales at Philips, which has been shifting away from less-profitable businesses and cutting costs in its remaining units, were seen at €6.9 billion.
The company has been taking advantage of a recovery in its key markets after a spate of record losses and has also stepped up what it spends on marketing to boost its image among consumers, especially in the United States.