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Amsterdam (pte029/18.04.2005/12:15) - Dutch electronics company Philips http://www.philips.com has announced large first quarter losses in 2005 compared to the same period a year earlier. As the company reports in a press release on its website, its net income fell from 550 million euros to 117 million euros. According to the company, the 433 million euro decrease in profits was due to a 435 million euro lower contribution from unconsolidated companies. Operating profit fell from 218 million euros to 193 million euros and revenue amounted to 6.6 billion euros.
In the company's entertainment division, revenue climbed seven per cent to 2.15 billion euros, while operating profits dropped 59 million euros in the same period in 2004 to 46 million euros. In its semiconductor business, operating profits fell by an even greater margin - from 69 million euros to just 14 million euros. The joint LCD venture LG Philips LCD, which contributed 215 million euros worth of profits, this time round fell by 34 million euros.
"It's encouraging to see another solid quarter, with steady performance and profitability in all our main businesses," said Gerhard Kleisterlee, the president and CEO of Philips. "I am pleased with the progress being made in Consumer Electronics, reflecting the successful implementation of our Business Renewal Program. The cyclicality of the technology sector had a negative impact, especially on our results from unconsolidated companies," he added. "Overall, we are on track with our management agenda. Our strong pipeline of market-driven, innovative products should position us well going forward."
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