AMSTERDAM, The Netherlands-Philips Electronics beat market expectations in its second-quarter results by posting a net profit of $47.5 million, in spite of the ravages of the SARS epidemic and a weak consumer market.
The market anticipated a net loss of $75.7 million.
“Focus on costs and asset management clearly remains the best course, given the fragile market conditions,” said Chief Executive Officer Gerard Kleisterlee.
The company said it expects an upswing in its chip business in the fourth quarter, which ran at 66 percent of factory capacity in the quarter, up from 61 percent in the preceding quarter. The unit, however, cut its loss to $156.2 million, witnessing only a 3-percent sequential growth.
“We do expect a very strong second half,” said Chief Financial Officer Jan Hommen.
