Philips First-Quarter Net Income Surges

Philips, a Dutch maker of electronics products for healthcare, reported a sharp jump in its net income in the first quarter helped by savings on procurement and other business costs which lead to an improvement in operating performance.

The Amsterdam-headquartered company posted net income of 259 million euros ($281 million), or 0.25 euro cents in the three months ended March 31, compared with 37 million euros, or 0.03 euro cents in the same quarter a year earlier, the company said on Monday.

Profitability was driven by an 18% increase in adjusted earnings before interest, taxes, and amortization (EBITA), management’s favored measure of performance, to 442 million euros. That represented 7.7% of sales, compared with adjusted EBITA of 374 million euros a year earlier, which was 6.8% of sales. The company said that it saved 41 million euros on procurement and 54 million euros on other productivity programs during the period.

By Kristen Tardella