Philips Electronics reported a 22% increase in its second-quarter operating profit, and said it was on track to meet its sales and profit margin targets. Europe's biggest consumer electronics producer posted earnings before interest and tax (EBIT) of €302 million (US $415.9 million), up from €247 million a year earlier. Sales fell to €6.1 billion from €6.38 billion a year ago, but excluding currency effects and disposals and acquisitions, revenue was flat.
Philips said it was on track to meet its targets of 5% to 6% average annual sales growth and a profit margin at the level of earnings before EBITA of at least 7.5% in 2007. The second-quarter EBITA margin was 6.4%. The group's net profit rose to €1.57 billion from €301 million last year. (AP)