Thomson profits crash on restructuring charge

11th February 2004, Comments 0 comments

PARIS, Feb 11 (AFP) - French household electronics group Thomson reported on Wednesday that its profits in 2003 had plummeted because of charges totalling EUR 300 million mainly for restructuring its components division.

PARIS, Feb 11 (AFP) - French household electronics group Thomson reported on Wednesday that its profits in 2003 had plummeted because of charges totalling EUR 300 million mainly for restructuring its components division.

Net profit fell to EUR 26 million from EUR 373 million in 2002.

The price of shares in Thomson fell 2.56 percent to EUR 17.53 in early trading in Paris in a market showing an overall gain of 0.04 percent.

Dealers said the net profit was far below the average figure expected by analysts of about EUR 181 million, attributing the difference to the high restructuring charges.

Thomson, an international brand for household electronic goods and electronic parts, nevertheless made a net profit of EUR 118 million in the second half of 2003, compared to a net loss of EUR 92 million in the second half of the previous year.

Over the whole of 2003, Thomson's sales fell to EUR 8.45 billion from EUR 10.18 billion in 2002.

The group said it had speeded up restructuring of its components division in 2003.

Of its total exceptional charges of EUR 300 million, EUR 138 million to the components business, which should move from loss to balance in 2004 as a result of corrective action, the company said.

A further EUR 60 million in exceptional charges were related to consumer goods activities, it said.

© AFP

                                                              Subject: France news

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