AMSTERDAM: Philips, Europe’s largest consumer electronics group, has swung to a bigger-than-expected third-quarter net profit and reported improving sales at its closely-watched semiconductor unit.
The Dutch company announced yesterday a net profit of 124 million euros (US$144.9mil) for its third quarter, although it made an operating loss of 126 million euros because of charges of 152 million, mainly for the closure of two plants at its chip unit. Sales came in at nearly seven billion euros.
Philips had been expected to make a net profit of 35.9 million euros versus a loss of 330 million a year ago, according to a poll of 18 analysts.
The volatile semiconductor unit showed further signs of improving core earnings, with sales up to 1.25 billion euros from 1.19 billion a year ago and up a surprising 9% in dollar terms from the previous quarter.
Philips reiterated a pledge that the division would turn profitable in the fourth quarter.
In the 3rd quarter, the bottom line of Europe’s No. 3 chipmaker received a 239 million euro boost from non-consolidated companies including the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co, in which it holds 22%. – Reuters