Philips 4Q Earnings Double

Net profit doubled to 1.39 billion euros ($2.03 billion) from 680 million for the same quarter a year ago, while sales rose 3.8 percent to 8.37 billion euros ($12.2 billion).

Philips said its profit included gains from the stake sales of 1.09 billion euros ($1.60 billion), offset by 404 million euros ($591 million) in one-time charges.

The company also said its global profit margins strengthened in the quarter.

Operationally, Philips' medical equipment arm remained its most profitable, with earnings up 9.9 percent to 322 million euros ($471 million), despite a 2 percent fall in sales.

At its lighting arm the world's largest lighting company earnings were boosted 33 percent by acquisitions and growth. The unit's operating profit rose 34 percent to 170 million euros ($249 million) on a sales rise of 14 percent.

Sales at Philips' consumer electronics division rose 7 percent, while earnings were flat at 233 million euros ($341 million).

Geographically, 11 percent sales growth in Europe outweighed a 10 percent fall in North America, with strong growth in emerging markets.

"We recognize the market's caution on 2008 macroeconomics developments particularly in North America and Europe," Philips said.

But the company said growth in emerging markets, new products, and benefits from recent acquisitions would help it "continue on (its) improvement path."