phg_logo.jpgRoyal Philips Electronics NV (NYSE: PHG, PHG message board) stock is on a roll, coming to a fresh 52-week high on Tuesday against the background of reports about tripled third quarter earnings growth which left analysts’ estimates trailing in the periphery, thanks to severe cost savings. This is the second consecutive time that the Dutch electronics group has posted quarterly profits after loses in the other two preceding quarters due to tenderness of consumer electronics demand on global economic downturn.

    Making reference to the ongoing recession, Philips did not forecast the financial results for the remainder of the year. Meanwhile, the company said it has set its sights on increasing its offerings of energy efficient LED lights as well as expanding its chains of Philips-branded lighting in Asia.

  For the third quarter the lighting manufacturer posted a net income of $259 million ($0.19 a share), up from a profit of $85 million ($0.06 per share) reported in the corresponding period of a year earlier. On average, industry analysts were looking to lower profits on year-over-year basis at $61 million.


Even though net income came in better-than-expected, sales were down 11 percent from the previous year and flat from the quarter before the one under review. However the total figure of $8.3 billion managed to slightly beat a street outlook of $8.1 billion. Sales figure for the same period of 2008 had arrived at $9.3 billion. This year’s sales decline was worsened by the firm’s consumer electronics division which fell 20 percent, followed by the lighting division sales which descended 13 percent on a year ago.

  PHG shares closed the normal day’s trading session at $27.17 from $27.01 the day before. The stock moved 3.24 percent in the pre-market trading, setting a new 52-week record high of $28.05.

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  Reference:
http://www.philips.co.za/