Amsterdam: Dutch conglomerate Philips Electronics’ reported a better than expected third-quarter operating profit on Monday as a result of cost reductions but the company remained cautious, seeing no recovery in most markets.
Earnings before interest, taxes and amortisation (Ebita) of €344 million ($507 million) beat the average forecast of €109 million given in a Reuters poll of analysts and compared with €57 million made in the same quarter last year.
Individual analysts’ expectations ranged from €29 million to €176 million.
“While encouraged by the positive development in sales and profitability during the third quarter, we remain cautious about the short-term outlook in the absence of structural recovery in the majority of our end-markets,” the company said in a statement.
The world’s biggest lighting maker, in the top three for hospital equipment and Europe’s biggest consumer electronics producer, Philips is in the process of cutting 6,000 jobs this year to cope with the recession.
It expects cost savings of €600 million next year.