Philips Electronics NV, Europe’s biggest consumer electronics group has outperformed even the most optimistic of analyst’s forecasts with its second quarter results on Thursday, and investment houses have been scrambling to adjust their earnings and price estimates for the full year. Analysts were predicting profits (excluding one off items) of between $209m and $263m, while actual figures came in at the equivalent of $337m on revenue up 4% at $16.236bn. Biggest performer in the period was the components and semiconductors division, where revenues were up 14% to $4.318bn and profits from operations jumped by 17% to $515m. But there was mixed news from the largest division in the group, consumer products, where profits climbed to $130m from losses of $45m last year, but revenues were down 6% to $5.167bn. The figures reflect the divestiture of Philips’ long time problem child, the loss making Grundig AG. Geographically the biggest improvements were seen in Europe, with losses coming in as expected in the US. There is growing confidence from the markets in the abilities of newly appointed chairman Cor Boonstra, and the shares, which had already traded strongly on Wednesday ahead of the results, leapt up 8% at the commencement of trading to around $91 to finally close up 6% at $83.50.
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