Weak chip demand, charges hit Philips Q4 profit

Weak chip demand, charges hit Philips Q4 profit

Fourth-quarter profit has fallen at Philips as the Dutch electronics giant encountered slow demand for its chips and a mix of financial charges.

Net income in the fourth quarter dropped to $US680 million as of December 31, the last day of the period being reported), down from $US779 million in the same period the year before, the manufacturer said.

Group sales for the quarter rose 2 per cent to $US11.98 billion, from $US11.72 billion a year ago.

Sales of Philips' semiconductors dipped 7 per cent to $US1.82 billion.

Net income at the group's liquid crystal display subsidiary in Seoul, LG Philips LCD, plummeted to Euro 14 million from Euro 199 million the year before, due largely to restructuring and impairment charges of Euro 109 million.

Philips said it was cautious about the first half of 2005 due to mixed signals coming from the world's major economies.

Earlier last week, German semiconductor maker, Infineon Technologies, said it expected a continued slowdown in demand in the overall worldwide semiconductor market in the early part of 2005.

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