May 25, 2011 / 10:47 AM / 7 years ago

UPDATE 1-Philips sees no group restatement in Mexico probe

* Philips probing potential accounting fraud in Mexico

* Says does not expect restatement of group results

* Philips shares flat in line with market

(Adds company comments, details, shares)

AMSTERDAM, May 25 (Reuters) - Dutch electronics group Philips (PHG.AS)(PHG.N) said it was investigating the accounts of its medical equipment unit in Mexico, but stressed it did not expect the probe to result in a restatement of group results.

Philips was responding to Dutch media reports on Wednesday that it was investigating potential fraud at the Mexican unit. One report said there were indications the unit’s sales results were portrayed too positively.

Company spokesman Steve Klink confirmed to Reuters that Philips was conducting an investigation, but stressed it would not lead to a restatement of Philips’ results at a group level.

    Shares in Philips were up 0.11 percent at 19.06 at 1044 GMT, in line with a flat Amsterdam blue chip index .AEX.

    Earlier, Dutch newspaper Eindhovens Dagblad, citing comments from a KPMG accountant in confidential documents, said the financial results for 2009 “very likely” need to be adjusted while results for 2008 “perhaps” need to be adjusted.

    Philips is the world’s biggest lighting maker, a top three hospital equipment maker and Europe’s biggest consumer electronics producer. (Reporting by Gilbert Kreijger and Aaron Gray-Block; Editing by Hans Peters)

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