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Philips profits continue rebound

19 April 10 07:46

Global electronics giant Philips has reported a profitable quarter, as the Dutch firm continues to recover from the recession.

The company said it made a pre-tax profit of 320m euros (£283m; $431m) for the first three months of the year, compared with heavy losses in 2009.

Philips said growth in its lighting business had led the recovery, recording an 18% rise in sales.

Sales of televisions were also up slightly on last year.

The company also said that its expansion into emerging markets was aiding its recovery, with sales there up 22%.

Cautious outlook

Gerard Kleisterlee, Philips' chief executive, welcomed the results, though he admitted that profits were bound to compare favourably to those from during last year's recession.

"I believe that with the results we have delivered in recent quarters, we have started to demonstrate the real potential of our business portfolio," he said.

Sales of expensive electronic goods, including flat-screen televisions, suffered during the recession as consumers cut back on spending.

Philips reacted by cutting costs, with global staff cut by more than 5,000 in 2009.

Mr Kleisterlee remained cautious about the outlook for the global economy for the rest of the year.

"Economic uncertainty remains high and consumer confidence low," he warned.

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