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Thomson Q1 CE Segment Revenue Flat

4/14/2004 10:35:00 AM Eastern

Paris — Thomson’s cverall first quarter revenue was flat in its Industry & Consumer Solutions segment, with the company’s consumer electronics and components business coming in at $1.21 billion, compared with $1.23 billion in the year-ago period.

With currency movements reducing segment sales by $99.2 million, revenue dropped 1.5 percent. Excluding currency movements, sales grew by 6.5 percent.

Thomson did not report either first quarter segment or consolidated earnings at this time.

Revenue in Thomson’s CE segment, excluding television, was broadly flat. The company said it achieved a "good performance" in accessories, driven by the successful integration of the Recoton retail base and by accessories product range expansion. Mobility and portable products and communications devices were more mixed over the first three months, ended March 31. Overall revenue from these businesses accounted for 28 percent of the Industry & Consumer Solutions division sales.

Thomson’s television business, which contributed 38 percent of sales in the CE segment, benefited from a strategy that focuses on a broader range of high-end TV sets, with a large contribution from digital and other high-end products. Thomson said it has achieved a 13.5 percent market share of digital-projection TVs in the United States.

The Industry & Consumer Solutions division also includes components activity, mainly tube product, which saw its sales increase by 11 percent in the first quarter including currency movements. This reached $345.3 million, compared with $311.8 million in the first three months of 2003. Excluding currency movements, revenue from components jumped 20 percent in the first quarter year-on-year.

Thomson consolidated net revenue in the first quarter dropped to $2.2 billion from $2.3 billion in the first three months of 2003. Currency movements reduced sales in the quarter by $169.6 million, pushing this down by 1.4 percent. Sales excluding currency movements grew by 6.1 percent. Thomson cited improvements in its Industry & Consumer Solutions segment for playing a role in its consolidated sales upturn.

Thomson expects continuation of sales growth during the second quarter, coming in at 4 percent to 6 percent, excluding currency movements. Operating income for the first half of 2004 should reach $166.1 million, about the same as the first half of last year.

Thomson will record about 80 percent to 90 percent of its anticipated 2004 restructuring charges of $238.9 million during the year’s first half.