Philips Electronics said high inventories would continue to impact business in the fourth quarter as slow consumer buying weighed on third-quarter results.
Earnings of Europe's biggest consumer electronics maker came in just above expectations as the conglomerate benefited from less volatile business units, it is also the world's biggest lighting producer and top three maker of hospital equipment.
Overall sales growth slowed to 3 per cent compared with the 11 per cent gain in the second quarter, affected by cautious consumers who have seen oil prices rise to record highs.
Revenues were up 3 per cent at €7.3 billion, against a forecast for €7.32 billion.
Operating profit before exceptionals at €384 million compared with a year-ago loss of €126 million, and with an average forecast of €377 million. Total operating profit of €1.02 billion included a non-taxable gain of €635 million from the flotation of digital mapping company Navteq.
Philips shares opened 1.2 per cent lower at €18.75.