Philips recorded net income of €616 million (€0.48 per share), compared with net income of €42 million (€0.03 per share) in the same period last year.
Sales amounted to €7,280 million, an increase of 11% over the same period last year. The weaker US dollar and dollar-related currencies had a downward effect of 3%. Comparable sales increased by 14%.
Income from operations was a profit of €356 million, compared with a loss of €26 million in Q2 2003.
Unconsolidated companies contributed €430 million to net income, including a gain of €99 million related to InterTrust Technologies Corp. In Q2 2003 results from unconsolidated companies amounted to €108 million.
Cash flow from operating activities was €62 million. In Q2 2003 cash flow from operating activities totaled €148 million. Inventories as a percentage of sales amounted to 12.5%, compared to 12.8% in Q2 2003.
Gerard Kleisterlee, Philips' President and CEO: "Clearly, Philips is on its way to sustained profitability and growth. The Board of Management is pleased to see the strong increase in top-line revenue, with improved income from operations and net income reflecting the benefit of continued financial discipline and focus on execution.
"Based on our innovation pipeline, a well-filled order book and a reduced cost structure, we are confident that in the second half of the year we will see ongoing growth in revenues and earnings across our divisions."
Press Release | 18.07.2004