Philips shocks analysts with profit boost

Shares rise accordingly...

By Sonya Rabbitte, 16 April 2002 10:30

NEWS Dutch electronics giant Philips surprised analysts with a first quarter profit this morning, reversing the E2.6bn (£1.59bn) loss it racked up in 2001. Net profit for the quarter was E9m (£5.9m). Despite optimistic forecasts from Philips earlier this year analysts had expected the company to have a loss-making quarter. Philips shares, listed in Frankfurt, were up 5.56 per cent on the news to E34.20 (£20.9) by 10:30(CET). The company said it expected to maintain profitability in the second quarter, and predicted full year results for 2002 will also show a profit. The company said higher margins and improved business in semiconductor and component divisions helped improve performance, and it revealed expectations for a single figure rise in second quarter sales. Philips also said its cost cutting programme had paid off, with E130m (£79.6m) already saved.

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