Despite the growth in sales, investments and higher raw material costs led to a decline in earnings.
Through Accelerate, Philips’ change and performance programme, the company is investing in growth, reducing overheads and addressing structural change.
Included in the programme is a cost reduction scheme to save approximately £700 million. About 60 per cent of the savings are people-related and will result in the loss of 4,500 positions across all arms of Philips.
Frans van Houten, Philips chief, said: ‘We are focused on improving the performance of Philips, driven by our change programme, Accelerate.
‘Lighting, despite operational and performance issues that are being addressed, is sustaining its global leadership position, and we are particularly pleased with our high growth in energy-efficient LED lighting solutions.
‘We are taking the right steps to achieve our 2013 mid-term financial targets.’