The Dutch company – Philips has reported a profit for the third quarter, which was higher than expected due to lower costs, as well as orders in the field of health care in the United States.
Philips's net profit for the third quarter amounted 324 million euro, while in the same period last year the company had a loss in the amount of 103 million euro. Sales rose 2 % to 5.80 billion euro compared to the same period last year.
Profit before interest expenses, taxes and amortization (EBITA) amounted to 429 million euro against a loss of 62 million euro a year earlier. Adjusted EBITA jumped by 20%, to 570 million euro. Analysts surveyed by Bloomberg, on average, expected the adjusted figure at 535 million euro.
The revenue increased by 12.5%, from 5.19 billion to 5.84 billion euro. Comparable sales increased by 2%, to 5.8 billion euro.
Free cash flow in the last quarter was 58 million euro against 155 million euro a year earlier.
In the third quarter of 2014, the company's losses were related to the temporary closure of a factory in Cleveland, Ohio.
Analysts polled by Thomson Reuters, expected a net profit of 191 million euro and sales revenues of 5.80 billion euro.
The company confirmed its full-year outlook, expecting a "modest" increase in sales and an increase in operating profit in 2015.
Philips also reported that the sale of Lumileds division, which produces LED lamps, to a consortium of mainly Chinese investors is faced with the unexpected resistance by the US government.
In March, the company announced its intention to sell 80.10 % of Lumileds shares to the investment fund - Go Scale Capital, managed by GSR Ventures and Oak Investment Partners. The deal is valued at $ 3.3 billion. Despite the uncertainty surrounding the Lumileds transaction, Philips reiterated its intention to withdraw from the business for the production of light units, which was working for 124 years. This will happen in the first half of 2016 and there is likely to be an IPO of the unit.