Philips Posts Higher Q1 Revenue, Sales

STOCKHOLM (04/19/2000) - Philips Electronics NV today reported healthy growth in both net income and revenue for its first quarter ended March 31.

Net income for the quarter rose sharply (including sales of assets), reaching 1.14 billion euros (US$1.08 billion), or 0.86 euros per share, as compared to 469 million euros and 0.32 euros, respectively, in the same period a year ago, the Netherlands-based electronics maker said in a statement.

Excluding one-time items, income from continuing operations during the quarter rose to 614 million euros, a 92 percent year-on-year increase, Philips said.

Revenue, meanwhile, rose 22 percent to 8.33 billion euros, from 6.84 billion euros in the same period a year ago.

Philips credited the improvements in income from continuing operations to strong sales in nearly all of the company's product sectors, lower employment costs and strong performance at unconsolidated companies.

Sales growth is also accelerating in many segments, ranging from semiconductors and components to consumer communications and digital networks, Philips said.

On a regional basis, sales in Europe rose 14 percent year on year, driven by consumer electronics, with a major upturn in Eastern Europe, which saw a 46 percent increase in sales, the company said.

In North America, sales rose 7 percent, and Latin American sales growth was strong at 23 percent, while Asia-Pacific sales were up 7 percent year on year, Philips said.

Looking forward, Philips said the first-quarter results confirmed the company's positive outlook for the year. The company said it expects to achieve double-digit earnings growth and a positive cash flow again this year.

Investors seemed heartened by the results and the positive outlook. In mid-morning trading in Amsterdam today, Philips shares were trading at 44.25 euros, up more than 5 percent from yesterday's close.

Philips, in Eindhoven, the Netherlands, can be reached at +31-40-27-369-29, or via the Web at http://www.philips.com/.

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