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News > International
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Philips posts record loss
graphic February 7, 2002: 3:42 a.m. ET

Dutch chip maker does not see markets strengthening this year
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  • Philips expects more cost savings - Jan. 8, 2002
  • Philips to post 2001 loss - Oct. 16, 2001
  • Philips expects chip loss - Jun. 15, 2001
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  • Philips Electronics
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    AMSTERDAM (CNN) - Philips Electronics, Europe's biggest consumer electronics company, posted a fourth-quarter loss as demand for chips and televisions slumps.

    The Dutch company made a loss of graphic1.14 billion ($1 billion), or 90 cents a share loss, in the three months to December 31, compared with a profit of graphic2.79 billion, or graphic2.16 a share, a year ago. Sales fell 16 percent to graphic9.26 billion.

    A U.S.-led economic slowdown and worldwide job losses are making consumers think twice before splashing out on replacing electronic goods, while mobile phone sales have stagnated.

    "2001 was tough year for Philips,"  said Chief Executive Gerard Kleisterlee.

    Philips warned the severe declines in the IT and telecommunications markets have now stopped, but it did not see markets strengthening.

    "Economic conditions around the world continue to point to a limited growth environment. Improvements in results in 2002 will come mainly from cost reductions, efficiency improvements and restructuring programmes," the Dutch group said.

    The company also reported its largest full-year loss since 1996. Philips said it made a loss of graphic2.6 billion in 2001, compared with a record profit of graphic9.6 billion a year ago.

    Analysts polled by Reuters expected an average net loss from continuing operations of graphic2.3 billion euros.

    Europe's third biggest chipmaker had forecast a net loss of some graphic600 million euros, excluding restructuring and other one-off charges. The company has slashed more than 12,000 jobs over the last year in a bid to return the company back to profit.

    The cost of jobs losses, restructuring its business and fall in value of shares held in Vivendi Universal (PEX), Europe's biggest media company, and GN Store Nord, which makes headsets for mobile phones, was graphic1.7 billion.

    Philips' closely watched semiconductor business, which accounted for about a third of the company's profits in previous years, saw sales tumble 44 percent to graphic940 million in the fourth quarter. The chip industry is suffering its worst ever downturn in 2001 as overcapacity led to a slump in prices.

    Its stocks, which has fallen almost 40 percent over the last 12 months, slipped 1.8 percent to graphic28.85. graphic

      RELATED STORIES

    Philips expects more cost savings - Jan. 8, 2002

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    Philips Electronics





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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