LONDON (Dow Jones) -- Dutch conglomerate Philips Electronics on Monday said it was buying back $1.9 billion ( 1.5 billion euros ) of its own shares after its quarterly profit tumbled 69%.

Philips Electronics (PHG) noted the profit slide, which brought its second- quarter income down to 301 million euros, was due to a year-ago sale of its 753- million-euro stake in digital mapmaker Navteq; otherwise, Philips said its profit would' ve improved 30%.

Its operating profit more than doubled to 367 million euros and sales rose 10% to 7.6 billion euros .

Philips' net income missed analyst forecasts while sales were above consensus.

Philips shares rose 2.4% in a flat Dutch stock market.

Philips CFO Pierre-Jean Sivignon said on a conference call with journalists that the buyback should take 18 months to complete. Philips shares are at " attractive" prices, he said.

Semiconductor profit quadruples

Its semiconductors unit, which makes microchips for use in mobile phones and automobiles, showed a quadrupling of its operating profit on restructuring. Philips is looking to either list the division on a stock market or sell it outright.

Medical systems, domestic appliances, lighting divisions also showed profit growth, while consumer electronics operating profit dropped 27% on price pressures

Its holdings in Taiwan Semiconductor and LG.Philips LCD weighed on profitability as well.

Sales won' t grow as fast in the second half after a strong 2005 second half.

Sivignon said on the conference call that 2006 operating profit margin target for consumer electronics may be " a bit shy" of 4%, against the company' s 4% to 4.5% target range, while medical systems comparable sales will be " north" of 6% against a previous target of 5%. (END) Dow Jones Newswires 07-17-06 0501ET Copyright (c) 2006 Dow Jones & Company, Inc.