Philips reports sales increase of 5% in third quarter report
22 October 2005
Philips sales increased to €7,626, 5%
above the 2004 third quarter figure, comparable to 4% after adjustments for
currency movements and consolidation changes. Sales were driven by strong
growth in all main product divisions except Semiconductors. Medical Systems
sales increased 7%.
Net income was €1,436 million (€1.14
per share), compared with net income of €1,172
million (€0.92 per share) in the corresponding period of 2004. The increase
was primarily attributable to the sale of several stakes which together
yielded a non-taxable gain of €1,086 million. Q3 2004 included a €635
million non-taxable gain related to the NAVTEQ IPO.
Philips' President and CEO Gerard
Kleisterlee said, "After a slower first half-year, we are pleased
to see growth across Philips has picked up in the third quarter as we
improved our profitability. Thanks to the solid underlying performance
during the quarter, we are on track with our financial targets and
delivering on our commitments. We were able to outperform weaker consumer
markets thanks to innovative product concepts like the new Flat TV and
shaver ranges. We also saw improving results from our Semiconductors
business as our renewal program begins to take effect. In addition, our
Medical Systems business continued to show strong revenue growth.
During the quarter, we made progress in implementing our strategy by
further reducing our stakes in other companies. We used some of the proceeds
to acquire Stentor, a leading healthcare IT company, and to support our
share buy-back program. We also announced a significant investment in the
emerging technology of solid-state lighting through the planned acquisition
of a further 47% stake in Lumileds."
Sales in the Medical Systems sector increased by 7% to
€1531, a record for the third quarter,
driven by computed tomography, X-ray, and cardiac and monitoring systems,
which showed double digit growth. The was driven by all businesses except
MedQuist, Nuclear Medicine and Medical IT. Philips reports that the customer
response to the acquisition of US PACS supplier Stentor was positive, it has
affected sales and orders in IT as customers put their orders on hold in
anticipation of the product, iSite PACS from Stentor. Very strong sales
growth was reported in the China and Japan.
Full 2005 third quarter report: