Philips described its performance over the quarter as 'solid'

The Dutch firm said net profit for the period was 1.436bn euros ($1.72bn; �0.98bn), up 22% on a year earlier.

The figure was helped by a 1.09bn euros gain on the sale of non-core assets.

"After a slower first half year, we are pleased to see growth across Philips has picked up in the third quarter as we improved profitability," it said.

'Sign of confidence'

The world's biggest lighting maker, reported a 5% hike in third-quarter sales to 7.626bn euros.

"Thanks to solid underlying performance during the quarter, we are on track with our financial targets and delivering on our commitments," said chief executive Gerard Kleisterlee.

Analysts welcomed the improved outlook from Philips, which reported falling sales in the summer.

"This is a sign of confidence, and that's impressive given the fact that markets are still fairly uncertain," said analyst Eric de Graaf at broker Petercam.