twice connect
careers

Philips CE Segment Sales Off 2%

7/18/2005 08:08:00 AM Eastern

Amsterdam, The Netherlands — Strong sales in North America, aided by a favorable performance in flat-panel televisions, helped the consumer electronics business at Philips Electronics register $2.72 billion in sales during the second quarter.

However, while both connected displays and home entertainment networks posted comparable growth throughout Philips’ business reach, a decline in sales of licenses reduced CE segment sales 2 percent in the second three months, compared with $2.75 billion in the same period in 2004.

Income from operations for home entertainment networks and lower restructuring charges boosted overall CE segment income from operations to $74.6 million in the second quarter, ended June 30, up from $63.8 million year-on-year.

CE sales helped drive up overall second-quarter revenue in North America by 4 percent, rising to $2.22 billion in the period, compared with $2.20 billion in the same quarter a year earlier.

Philips reported that its CE business remains on track to achieve a 4 percent to 4.5 percent profitability target by the end of 2005. Supporting this expectation is a six-month CE segment sales increase, to $5.3 billion, up from $5.2 billion in the same period last year. Income from operations for the segment declined during the first half, to $130 million from a year-ago $134.8 million.

First-half sales in the United States overall climbed to $4.01 billion, said Philips, up from $3.92 billion in the first six months the prior year.

Consolidated Philips sales in the second quarter slipped 3 percent, down to $8.5 billion, compared with a year-earlier $8.8 billion. However, consolidated net income in the three months rose to $1.2 million, compared with $741.5 million in the same three months in 2004, due entirely to the sale of the remaining 30 million shares of common stock Navteq Corp., which yielded a non-taxable gain of $906.4 million.

For the first half, consolidated Philips sales edged downward, reaching $16.52 billion from a year-ago $16.74 billion. Net income for the period slipped to $1.32 billion, from $1.40 billion in the first six months of 2004.

PHOTOS
ProSource Meeting Filled With Optimism

San Antonio — Optimism reigned at ProSource’s

Ingram Draws 500 To Spring Vendor Expo

Scottsdale, Ariz. — Ingram Micro Consumer

CEA Holds ’14 Digital Patriots Dinner

Washington — CEA held its annual Digital Patriots’

8 Technology Accessories For a Greener Earth

An Earth Day review of Earth-friendly products, by

BrandSource Shows Diverse Product Selection

BrandSource’s Summit show at the Marriott World

Scenes From Toy Fair

By Lisa Johnston

ADL Honors Morales, Bilas, Paull, Weedfald At Annual Dinner

New York — The Anti-Defamation League’s National