Philips posts unexpected net profit of e174 mn in Q3

AMSTERDAM: Royal Philips Electronics, Europe���s biggest consumer-electronics maker, unexpectedly posted a profit in the third quarter as operating earnings at the consumer unit more than doubled.

Third-quarter net income jumped to e174 million, from e57 million in the year-earlier period, the Amsterdam-based company said. Analysts had predicted a loss of e44.7 million, the average of 13 estimates compiled by Bloomberg.

���They���re coming out of the recession more strongly than I had previously thought,��� said Peter Olofsen, an Amsterdam-based analyst at Kepler Capital Markets who has a ���reduce��� rating on the stock. ���The cost savings are being implemented with a lot of drive. Now the waiting is for a recovery in sales.���

Philips shares rose the most since April 2 in Amsterdam trading after operating profit before amortisation at the consumer unit, which makes Senseo coffee machines and flat- screen televisions, climbed to e129 million, aided by job cuts. CEO Gerard Kleisterlee in July raised his annual cost-saving goal to more than e600 million from e500 million.