Cost Cuts Help Phillips Beat Earnings Forecast

The transition to light-emitting diode or LEDs from incandescent bulbs helped lighting sales rise 4 percent, though restructuring measures led profit to more than half and Philips will further streamline operations, Van Houten said.

“As we go deeper into the organization, we see more opportunities where there is duplication and indirect costs that are not helping innovation,” the CEO told Bloomberg. “In our new culture, we’re no longer tolerating that.”

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