Philips made net profits of 1.17 billion euros last year. This is a substantial increase from the 30 million euro loss in 2012.
Annual results were announced by CEO Frans van Houten in Amsterdam this morning.
Despite these positive results, Philips remains cautious about the global economic development. The company suspects it will continue to suffer from the economic insecurity and currency fluctuations.
According to CEO Frans van Houten, performance will benefit from current reorganizations. Philips is aiming for a 4 to 6 percent increase in sales for the years 2014-2016.
Philips is expecting to find another buyer for the electronics division manufacturing audio and video equipment this year. Last year, the company announced that the lifestyle entertainment division was sold to Japanese Funai, but the licence agreement was dissolved in October.