Phillips's profit more than triples in second quarter

The Dutch Royal Philips increased its efficiency and, despite a higher level of taxes on the result, managed to more than triple the net income during the second quarter, compared with the same months last year, to 317 million euros. The high was more than 210%.
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The gain in sales, however, was not as intense. The Group's net revenue was 5.65 billion euros, meaning growth of 1.5% on the same bases. The largest expansion in consumption was observed, which manufactures televisions, DVDs and other electronics — its turnover climbed 12.8 percent to 1.08 billion euros.
But the main Division of the company remained the medical equipment. Your recipe was 2.36 billion euros, which, on the other hand, represents 2.1% fall. The lighting segment surged from 1.1% to 2.05 billion euros, and the innovation and services, low of 5.8 percent, to 161 million euros.
The Exchange was the biggest villain for the performance of Philips in the quarter. Its turnover lost 1.2 percentage point with the oscillation of the coins in the markets in which it operates, in comparison with the euro. Excluding this effect, revenue would have grown 2.5% during the period.
More profitability
But the Dutch won in three months with the reduction in its spending. The cost of goods sold, for example, shrank by 3.6% in a year, peaking at 3.31 billion euros. The cost of sales fell 5.3% to 1.24 billion euros, and research and development expenses were reduced by 5.5% to 416 million euros.
In total, these measures led the operating profit to 509 million euros, i.e. 122% expansion in the same comparison. The margin on that line of the balance sheet amounted to 4.1% from April to June 2012 to 9% in the same quarter this year. The financial result still improved from 99 million euro losses to 78 million negative in the same period.
Finally, Philips's profitability was handled because of the higher level of provisions reserved for taxes on the profit. The increase was of 105%, to 121 million euros. Even so, its net margin ended the quarter at 5.6%, compared with 1.8% a year earlier.
Emerging ensures high revenue
Philips once again managed to increase net revenue because of its operations in emerging markets. According to the second-quarter balance sheet released by morning, these countries were 10% higher turnover in annual bases, against 3% fall in developed countries.
The company informs that the most important regions during the period were the Latin America, Russia and China. In Brazil, Maracanã Stadium lighting agreement in preparation for the 2014 World Cup helped prevent a drop in sales of the Group's lighting unit and more than triple the operating profit in the area, to 115 million euros.
According to Philips, the operations relating to Brazil also helped cut its gross debt 3% in the quarter. The company ended June with 4.4 billion euros of debt, largely due to the amortisation of part of their obligations in the country. The company's box was 2.31 billion euros, 40% drop compared to December.
Finally, the Dutch points to Brazil also because of investigations into a possible cartel in selling flat cathode ray tube. In the first half, the company was ordered to pay a fine of 509 million euros to the European Commission, which accuses her of artificially fix prices with the LG. In Brazil, the investigations continue.