twice connect
careers

Philips CE Sales Rise 11%

1/23/2006 08:45:00 AM Eastern

Amsterdam, The Netherlands — Driven by growing sales of connected displays, mainly flat-screen televisions, fourth-quarter revenue in the consumer electronics business at Philips Electronics jumped 11 percent, hitting $4.2 billion, up from $4.1 billion year-over-year.

In North America, comparable sales were up 9 percent, driven largely by consumer electronics, said Philips.

Excluding optical licenses, income from operations in the company’s CE business improved $142 million, due to better operational performance, lower restructuring charges and ongoing benefits from the company’s business renewal program. Restructuring charges in the quarter totaled $21.9 million, $74 million lower than in the last three months of 2004.

Including optical licenses, income from operations in the CE segment slipped to $284.1 million in the quarter ended Dec. 31, compared with $327.8 million in the same period the prior year.

For the year, CE segment sales moved up to $12.7 billion from a year-ago $12 billion. Income from operations for the 12 months soared to $614.2 million, up from $449.2 million in the prior year.

“On the back of a strong product lineup, we accelerated growth and increased profitability,” said Gerard Kleisterlee, president/CEO. “We gained some good momentum this year, and are confident of meeting our targets.”

Consolidated Philips revenue in the fourth quarter rose by 6 percent, coming in at $11.6 billion, up from $10.9 billion in the same quarter in 2004.

Consolidated income from continuing operations decreased to $472.2 million in the fourth quarter, down from a year-earlier $605.8 million. Net income was $403 million in the year’s last three months, compared with $604.5 year-on-year. A strong increase in income from operations was offset by lower results from charges and higher income taxes, said Philips.

For the 12 months, consolidated revenue increased 4 percent, hitting $36.9 billion, up from $35.6 billion in the previous year. Net income was flat, edging upward to $3.48 billion, compared with a year-ago $3.44 billion.

Along with flat-panel TVs, Philips cited chips for cellphones and shavers as the products most responsible for its improved fourth-quarter business.

PHOTOS
NATM Annual Meeting

Besides the usual business of planning out the

Ultra HD OLED TVs In IFA Spotlight

At IFA, all Ultra HD makers are quickly expanding

Jack Wayman, the Father Of International CES

Tributes continue to pour in for Jack Wayman, who

Nationwide PrimeTime 2014

Scenes from Nationwide PrimeTime buy fair held in