Philips Electronics reports decline in profits for Q3

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Royal Philips Electronics has posted a sharp decline in third-quarter profit, which the company said reflects the sale of its semiconductor unit a year earlier.

Philips reported that its net income fell to 331 million euros ($469 million U.S.) from 4.24 billion euros ($6.03 billion U.S.) in the year-ago quarter.

Philips also recorded a gain of 4.19 billion euros ($5.959 million U.S.) from the sale of a majority stake in its chip division, while the income from continuing operations, which excludes gains and losses from disposals, rose to 333 million euros ($473.4 million U.S.) from 1 million ($1.42 million U.S.) euros a year earlier.

Overall sales climbed 3.3 percent, reaching 6.52 billion euros ($9.27 million U.S.), while comparable sales rose 7 percent. Growth was particularly strong in emerging markets, with sales in Latin America up 20 percent, Philips said.

But Philips' shares fell 3.8 percent in Amsterdam, retreating on concerns about profit contributions from its medical-devices unit.