Philips Electronics will close year net profit

Dutch Philips Electronics expects to close the year with a net profit, while revenue is expected to be down compared with last year, its chief executive told a Belgian newspaper on Saturday. 'This year revenue will probably drop to a lesser degree, but we will end the year with a net profit,' chief executive Gerard Kleisterlee was quoted as saying in Belgian newspaper De Tijd. Philips said earlier this month it expected sales at its consumer lifestyle unit to continue to improve quarter-on-quarter, expecting fourth- quarter sales at the unit of about 2.8 billion euros. The unit, which makes products ranging from MP3 players and digital photo frames to water kettles, toasters and shavers, is weathering the recession better than other units, Kleisterlee said. As a result the consumer electronics unit will remain the biggest contributor to the group's sales. 'With the acquisition of Italian espresso machine manufacturer Saeco, a significant portion of sales will be added. This year the balance will be slightly in the advantage of consumer lifestyle, we expect,' Kleisterlee said. Previously Philips had said its healthcare unit, which makes brain scan equipments for hospitals and provides services to help doctors to monitor patients remotely, would be the biggest unit in terms of sales.