Phillips hit hard by struggling chip sales

Market dip digs into profits...

By Mark Graham, 17 July 2001 11:00

NEWS Phillips has reported a pre-tax loss of E819m (£500m) for second quarter 2001 and said it will break even or report a small loss for the full year. The Dutch chip and consumer electronics group said it does not foresee a recovery in the processor market before 2002, and reported an operating loss in its semiconductor division of E255m (£149m) - compared to a profit of E324m (£198m) for the same period 12 months ago. The E819m (£500m) loss compares with a pre-tax profit of E681m (£415m) for the same period last year with revenues dropping 16 per cent to E7.68bn (£4.68bn), down from E9.16bn (£5.59bn). Phillips shares dropped 5.7 per cent on the news, the stock has dropped 28 per cent in total this year.

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