Philips reports strong quarterly rise in profit

13th April 2004, Comments 0 comments

13 April 2004 , AMSTERDAM — Dutch electronics company Philips recorded net profit of EUR 550 million in the first quarter of 2004, a strong increase compared with the EUR 69 million loss reported in the same period last year.

13 April 2004

AMSTERDAM — Dutch electronics company Philips recorded net profit of EUR 550 million in the first quarter of 2004, a strong increase compared with the EUR 69 million loss reported in the same period last year.

The quarterly results exceeded analyst expectations despite the fact that a strong rise in profit was already indicated in the company's 2003 figures, news agency ANP reported on Tuesday.

In the fourth quarter of 2003, all major company divisions recorded profit, the first time this had occurred since 2000 and company chief Gerard Kleisterlee said in announcing the yearly figures in February that the company expected to be profitable in all four quarters in 2004.

Turnover in the first three months of this year was EUR 6.6 billion, a rise of 2 percent in comparison with the same period in 2003. Philips expects to maintain positive developments, public news service NOS reported.

The weak US dollar continued to negatively impact on company earnings because more than half of Philips turnover is linked to the dollar. Without the affect of the US dollar, turnover would have risen by 8 percent.

Philips expects that semi-conductors and medical systems will strongly contribute to profit growth this year, supported by results in the lighting division. The microchip division — the scene of massive restructuring — will benefit from the economic recovery, Philips said.

Philips returned to profitability last year after recent record losses, reporting a EUR 695 million net profit in 2003 in comparison with its EUR 3.2 billion loss in 2002. The Dutch multinational did not make any definite forecasts for 2004, despite indicating that it anticipated maintaining "the upward trend".

[Copyright Expatica News 2004]

Subject: Dutch news

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