Philips posts 94% drop in second quarter net profit

THE HAGUE: Dutch electronics giant Philips on Monday reported a net profit of 45 million euros in the second quarter of 2009, a drop of 94 percent compared to the same period last year.

The results were higher than expected by analysts contacted by Dow Jones Newswires, who had predicted a net loss of 125 million euros after a net profit of 732 million euros in the second quarter of 2008.

Philips turnover stood at 5.23 billion euros in the second quarter of 2009, down 19 percent from 6.46 billion euros in the same period last year, due to "continuing weakness in consumer and professional markets", the group said.

"We did not see a material improvement in consumer or professional markets in the past three months," said chief executive Gerard Kleisterlee in a statement.

But he added: "During the quarter we started to see the positive impact of our strict cost management on our results."

Philips announced in January that it would cut 6,000 jobs worldwide to cope with the global slowdown.

A company spokesman said all divisions would be affected by the job cuts.