July 21, 2014 / 5:46 AM / 3 years ago

Philips sees higher H2 core profit on cost cuts

AMSTERDAM, July 21 (Reuters) - Philips said on Monday it expects its core profit to rise in the second half of the year as a result of cost-cutting operations.

The Dutch healthcare, lighting and consumer appliances group reported second-quarter earnings before interest, tax and amortization (EBITA) of 415 million euros ($562.03 million) and net profit of 243 million euros on sales of 5.3 billion euros.

Analysts in a poll commissioned by Reuters had forecast net profit of 164 million euros and EBITA of 400 million euros on sales of 5.4 billion euros.

“While 2014 is expected to be a challenging year overall, we anticipate EBITA for the group, excluding restructuring and acquisition-related charges and other items, in the second half of the year to exceed the level of the same period last year,” the company said in a statement.

Earlier this month Philips has already said its second-quarter EBITA would be in line with forecasts at about 400 million euros, while warning its healthcare business would disappoint. ($1 = 0.7384 Euros) (Reporting by Harro ten Wolde and Thomas Escritt; Editing by Sunil Nair)

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