Sales and profits down at Philips

Philips is now hopeful sales may be improving.

Dutch electronics giant Philips has reported a big fall in second quarter profits after global sales dropped, but it says conditions may be improving.

The firm's net profit sank to 45m euros ($63m; £39m) for the April to June quarter, down 94% on a year earlier.

However, the results beat analysts' expectations of a loss. Philips said sales "could" now be rising.

Philips' sales for the second quarter period totalled 5.23bn euros, 19% less than a year before.

'Remain cautious'

Second-quarter sales in the firm's main consumer products division were down 30% from the same period a year ago, with televisions and hi-fi equipment seeing the biggest fall in demand.

Sales of its healthcare products were 5% lower.

"We remain cautious about the overall economy and the markets we're operating in, and will not shy away from implementing further cost measures where needed," said Philips chief executive Gerard Kleisterlee.

He added that the firm was committed to coming out of the recession "as a stronger, more agile company, and a leader in our field".