Twenty jobs are to be created at Aerogen in Galway after it signed a major deal with Philips' healthcare division.

Philips, the Dutch electrical goods and electronics group has reported a net profit of €124m in the third quarter, compared with a loss of €330m a year earlier. This turnaround was far better than market expectations.

Philips Electronics has announced a second-quarter net profit of €42m, despite general expectations of a loss, with sales dropping due to weak consumer spending and the impact of the SARS outbreak.

Philips has recorded its biggest ever loss because its acquisitions have lost so much in value.