The Dutch electronics group Philips Electronics posted a tripling of profits for the third quarter owing to robust trading and cost-cutting measures.

The Amsterdam-based Philips Electronics said its net profits jumped to 174 million euros or 19 cents-a-share in the third quarter as compared with 57 million euros, or 6 cents-a-share last year. Despite the rise in profits, company's sales dropped 11 per cent to 5.6 billion euros.

But, heavy cost-cutting measures have helped Philips Electronics to offset an 11 per cent drop in sales as.

Speaking on the issue, analyst Victor Bareno of SNS Securities, said, "The cost reductions and restructurings are having a substantial and positive impact."

The Dutch electronics group's operating loss from the television unit stood at 26 million euros as compared with 73 million euros last year.

Earlier in July, Gerard Kleisterlee, CEO of the company lifted his annual cost-saving projection from 500 million euros to over 600 million euros.

Gerard Kleisterlee said the company could opt for more cost cutting measures if required. Mr. Kleisterlee has already announced about 6,000 job-cuts.