PHIA Koninklijke Philips NV

AMSTERDAM—Royal Philips NV on Monday warned that the planned sale of its lighting components and automotive lighting operations hit a regulatory hurdle in the U.S., as it returned to a net profit in the third quarter.

Philips said the Committee on Foreign Investment in the U.S. has expressed "certain unforeseen concerns" on its planned sale of a 80% stake in its Lumileds business, without providing further detail. The company said it would "take all reasonable steps" to address the committee's concerns but that the closing of the deal was now uncertain.

The Dutch company in March agreed to sell the stake to investment group Go Scale Capital for $3.3 billion, in what was the first step in a two-part plan to exit the lighting business to focus on medical equipment and consumer-lifestyle products. The remaining lighting activities are being prepared for a possible initial public offering and the separation activities remain on track, Philips said.

The news came as Philips reported third-quarter results that beat analysts' forecasts. Net profit for the period came in at €324 million ($357 million), compared with a net loss of €103 million in the same period a year earlier. Revenue rose 12% to €5.8 billion, compared with €5.2 billion a year ago. Earnings before interest and tax excluding restructuring charges and other special items reached €570 million, compared with €474 million last year.

Chief Executive Frans van Houten said the results showed that Philips' operational performance is strengthening despite more challenging economic conditions, particularly in China.

Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com

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(END) Dow Jones Newswires

October 26, 2015 03:35 ET (07:35 GMT)

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