Tuesday, July 13, 2004
Philips reports net profit of EUR 616 million in second quarter
Philips recorded net income of EUR 616 million (EUR 0.48 per share), compared with net income of EUR 42 million (EUR 0.03 per share) in the same period last year.
Sales amounted to EUR 7,280 million, an increase of 11% over the same period last year. The weaker US dollar and dollar-related currencies had a downward effect of 3%. Comparable sales increased by 14%.
Income from operations was a profit of EUR 356 million, compared with a loss of EUR 26 million in Q2 2003.
Unconsolidated companies contributed EUR 430 million to net income, including a gain of EUR 99 million related to InterTrust Technologies Corp. In Q2 2003 results from unconsolidated companies amounted to EUR 108 million.
Cash flow from operating activities was EUR 62 million. In Q2 2003 cash flow from operating activities totaled EUR 148 million. Inventories as a percentage of sales amounted to 12.5%, compared to 12.8% in Q2 2003.
Gerard Kleisterlee, Philips' President and CEO:
"Clearly, Philips is on its way to sustained profitability and growth. The Board of Management is pleased to see the strong increase in top-line revenue, with improved income from operations and net income reflecting the benefit of continued financial discipline and focus on execution. Based on our innovation pipeline, a well-filled order book and a reduced cost structure, we are confident that in the second half of the year we will see ongoing growth in revenues and earnings across our divisions."
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