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New-look Philips lights up profits

AFP, The Hague
DUTCH group Philips, which has transformed itself away from some of its traditional businesses, reported an almost three-fold surge in third-quarter net profit on Monday.
The company also announced that later in the day it would begin to buy back its own shares under a programme totalling 1.5 billion euros ($2.0 billion).
Philips has experienced great difficulties in recent years and has responded with a restructuring which has involved reducing and refocusing its lighting, and phasing out its television businesses.
Chief executive Frans van Houten said in a statement that "this was another solid quarter for Philips, especially in light of the
challenging global economic environment." The Eindhoven-based company specifically is a market leader in LED lighting technology. This business said grew by 33.0 percent and now accounted for 30.0 percent of its lighting sales.
Philips announced that it had been selected by Dubai's municipality to instal environmentally-friendly LED lighting systems, which it said would lead to a 50.0-percent saving in energy.
In New Zealand, the company was installing a similar energy-efficient LED system in a brand of local fuel filling stations.
The group has diversified into medical equipment and healthcare which offer higher margins.
A highlight included a deal in with Singapore's largest health and beauty chain to screen citizens across the Asian country
for obstructive sleep apnea(OSA).
OSA is a sleeping disorder which causes breathing to stop for short periods at night and can lead to severe drowsiness during the day, among other symptoms.
The group's traditional household appliances activities had come under strong pressure from competitors, notably in Asia.
However, the latest results showed that the part of the business which grew the fastest was the household appliance division where sales on a comparable basis surged by 9.0 percent, and mainly in emerging markets where sales rose by 10.0 percent.
In Japan, Philips recently introduced an air-based fryer which cuts out the use of cooking oil, while in Latin America, it launched an instant soup maker that combines a cooker and a blender in one.