Philips hits Q2 profit, warns global markets 'volatile'

Electronics giant Philips posted a 57 percent jump in second quarter net profit Monday on the back of a major arbitration award, as it warned of volatile markets ahead for the rest of the year.

Net profit surged from 274 million euros ($300 million) to 431 million euros after Philips was awarded 144 million euros in an international arbitration following a botched deal to sell its entertainment arm to Japan's Funai electronics company.

Philips in October 2013 announced it was breaking off the 150-million-euro sale, accusing long-time business partner Funai of breach of contract.

Philips said the Japanese firm refused "to take the necessary steps to enable completion of the transaction and the transfer of the business," whose products included hi-fi systems and DVD players.

Both manufacturers then filed for damages before the International Court of Arbitration.