TV slump fails to slow Philips
Friday 28 July 1995
Europe's biggest consumer electronics company, Philips shrugged off slow TV sales to announce almost doubled first half profits yesterday, but it warned that unfavourable currency markets would hold its figures back for the year as a whole.
Net profits in the six months to June jumped to 1.13 billion guilders from 662 million, boosted by a surge in operating income from semi-conductors and components to 1.12 billion guilders from 750 million.
Consumer electronics remained by far the biggest sales generator, with first-half turn-over of 9.7 billion guilders, although sales were a touch lower than in the same period last year. Profits from the division were 219 million guilders (211 million).
Total group sales in the first half increased to 29.28 billion guilders from 27.96 billion previously. Lighting, the second biggest division, booked income from operations of 499 million guilders, against a previous 491 million.
Philips also announced an outline deal to sell part of its Communication Systems division's public network assets to US telecoms giant AT&T Corp for an undisclosed sum.
Completion of the deal is expected by the end of the year. Philips finance director Dudley Eustace said he did not expect profits to be diluted as funds raised from the sale would be ploughed back into the rest of the communications business.
Under the deal, two thirds of the loss-making Philips Kommunikations Industrie (PKI) of Germany and around half of the French-based Telecommunications Radioelectriques et Telephones (TRT) - also loss-making - will go to AT&T.
"We're selling the business because we're not big enough to be a major player against the huge telephone companies," Eustace said. "We will concentrate on portable phones and faxes rather than fight the majors in that business."
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...