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Philips Q2 CE Earnings Rise 19%

7/13/2004 01:15:00 PM Eastern

Amsterdam, The Netherlands — Philips Electronics posted strong second-quarter worldwide earnings of $764 million on sales of $9 billion, up from the $52 million in income reported during the second quarter last year, the company said today.

Philips’ leading sales segments were consumer electronics and semiconductors, which saw sales rise 19 percent and 28 percent, respectively, for this period. Displays and mobile infotainment products were responsible for most of the CE growth, said Gerard Kleisterlee, Philips’ president/CEO, during a conference call.

Jan Hommen, Philips’ executive VP and CFO, tempered the positive second quarter results by adding that similar increases in CE sales are not expected for the remainder of 2004, as the CE sector will only break even instead of being profitable as previously expected.

As a possible counterweight to this situation, Philips is engaging in a CE Business Renewal Program that company executives said will result in a reduction of cost and complexity in doing business in the CE sector.

Further details on this program were not available.

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