Philips Updates market on Semiconductors business

 

  • Third quarter US$ sales growth (excluding Mobile Display Systems) forecast to be up 27% year-on-year and flat compared with Q2
  • Division continuing to pursue measures to enhance competitiveness in shifting market
  • Collaboration with Philips Research helping contribute to advanced semiconductor technologies and applications like NexperiaTM and Near Field Communication

Amsterdam, The Netherlands - In a meeting with investors and financial analysts today, Royal Philips Electronics (NYSE: PHG, AEX: PHI) will give an update on the performance in its Semiconductors division, and also address the role Philips Research plays in creating future business opportunities based on advanced technologies.

 

"We expect third quarter sales in US dollars to be 27% up on sales of the third quarter last year and sequential sales growth to be flat," Mr. Scott McGregor, CEO of Philips Semiconductors, said. "We'll continue focusing on the measures we believe help enhance our competitiveness in shifting market conditions," he added.

 

Measures that can help create the conditions necessary for obtaining sustainable profitable growth include a continued focus on key account customers, a broad product portfolio, bringing Nexperia solutions to market, and the division's capital efficient approach to manufacturing. Philips will also report that demand for Connected Consumer applications - those that enable consumers to access and share content easily - is expected to exceed general demand for semiconductors.

 

As the Semiconductors business continues to focus its R&D spending on Nexperia and emerging technologies, such as Near Field Communication (NFC), the division will continue to draw on the strengths of Philips Research in developing advanced technologies with potential business opportunities and in supporting technology standards.

 

A webcast of the Semiconductors & Technology Financial Analysts Day begins at 10.00 CET and can be followed at www.philips.com/investor. At 16.30 CET, a press briefing on the subjects covered in the morning will also be webcast. To follow the press briefing, please visit www.philips.com/webcast.

Jayson Otke

Philips Corporate Communications
Tel +31 20 59 77 215
email jayson.otke@philips.com

Ms Yeung Chiu

Brand Management & Corporate Communications
Tel +852 2821 5635
Fax +852 2527 4850
email yeung.chiu@philips .com

About Royal Philips Electronics :

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 30.4 billion in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.semiconductors.philips.com.


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This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and TSMC and certain of the plans and objectives of Philips and TSMC with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, the levels of marketing and promotional expenditures by Philips and TSMC and its competitors, raw materials and employee costs, changes in future exchange and interest rates (in particular, changes in the euro and the US dollar can materially effect results), tax rates and future business combinations, acquisitions or dispositions and the rate of technical changes. Market share estimates contained in this report are based on outside sources such as specialized research institutes, industry and dealer panels, etc. in combination with management estimates.