Sept. 10 (Bloomberg) -- Royal Philips Electronics NV, Europe's largest maker of televisions, raised its target for profitability and said operating profit per share will more than double by 2010.

Earnings before interest, tax and amortization at its current businesses will exceed 10 percent of sales by 2010, the company said in a statement on its Web site. Profitability on that basis will be more than 7.5 percent this year, Philips said. The company previously had aimed for a 7.5 percent margin beyond 2007 as well, spokesman Arent Jan Hesselink said.

``This is very good; the targets are a very clear commitment,'' said Jan Willem Berghuis, an Amsterdam-based analyst at Kempen & Co. who has a ``buy'' rating on the stock.

Philips also said it will merge its consumer electronics, domestic appliances and personal care units into one division, called consumer lifestyle. The Amsterdam-based company said it will save as much as 200 million euros of costs from ``the organizational simplification.''

Philips shares rose 78 cents, or 2.8 percent, to 29.15 euros as of 9:05 a.m. in Amsterdam, heading for their biggest gain in two months. The stock earlier rose as much as 3.2 percent.

From 2008 through 2010, Philips aims to achieve at least 6 percent comparable annual average sales growth, the company said.

Andrea Ragnetti, currently chief marketing officer and chief executive officer of the domestic appliances unit, will lead the consumer lifestyle division. Rudy Provoost, CEO at consumer electronics, will head the lighting unit as of Jan. 1, replacing Theo van Deursen, who will retire next year.

To contact the reporter on this story: Marcel van de Hoef in Amsterdam at mvandehoef@bloomberg.net

Last Updated: September 10, 2007 03:08 EDT