Philips aims to make money from chips in 2003

Philips Electronics NV aims to return its semiconductor operations to profit this year despite ending 2002 with a book-to-bill ratio of just 0.87 and running its fabs at 52% of capacity during the fourth quarter as it ran down inventory.

By the fourth quarter, its chip operations managed to increase revenue by 3.6% to 1.1bn euros ($1.2bn), though the operating loss was up from 279m euros ($298.5m) to 312m euros ($333.8m).

In the year to December 31, semiconductors made an operating loss of 537m euros ($574.6m), down from a loss of 558m euros ($587m) on revenue that fell 6.6% to 4.6bn euros ($4.9bn).

Amsterdam, Holland-based Philips has also written off 921m euros ($985.5m) from the value of its holding in Atos-Origin SA, virtually eliminating the 1bn euros ($1.1bn) gain it originally booked when in sold its services subsidiary Origin BV to Paris, France-based Atos Group SA in 2000.

Source: Computerwire

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