Philips posts third-quarter sales losses

Dutch electronics giant Philips has posted worse-than-expected third-quarter losses.

Dutch electronics giant Philips has posted worse-than-expected third-quarter losses.

Its sales performance has continued to be hit by weak demand in the computer and telecoms markets.

Total sales fell by 23 per cent in the third quarter to £4.5 billion sterling, giving a total loss of about £323 million sterling.

The company has posted a 43 per cent decline in semiconductor sales in the third quarter, and revenue in its consumer electronics division also dropped.

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The semiconductor division posted an operating loss of £182 million, compared with a profit of £234 million last time.

At the consumer electronics division, sales fell by 18 per cent from a year ago to £1.6 billion. The division had an operating loss of £28.2 million, compared with a profit of £61.4 million a year earlier. At the components division, sales fell 63 per cent to £285 million.

Philips said sales of VCRs, set-top boxes and mobile phones were poor but that DVD sales remained strong.

In July, Philips announced it was cutting between 4,500 and 5,500 jobs in its semiconductor unit in the second half of the year. This equates to 3 per cent of its workforce.

PA