Sales growth at Philips - semis on the up -

Sales growth at Philips – semis on the up

LONDON — Philips is reporting a strong second quarter with sales up 10percent year-on-year € 7,601 million with a net income of € 301 million and EBIT for the quarter increasing to € 367 million.

Things look even better when the figures are adjusted for the effects of currency movements and consolidation changes, comparable sales increased by 11percent, driven by strong growth in all operating divisions. The company is to start a further € 1.5 billion share repurchase program the third quarter.

The company says medical systems, lighting and DAP all delivered strong increases in profitability, as did semiconductors, benefiting from its business renewal program while in difficult market conditions, the EBIT of consumer electronics held up.

Unconsolidated companies recorded a loss of € 105 million, € 85 million of which was attributable to LG.Philips LCD, compared to a profit of EUR 822 million in Q2 2005.

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