(Adds info by division)
AMSTERDAM (AFX) - Royal Philips Electronics NV's second-quarter net profit was slightly below forecasts, but sales and operational profit were higher.
Philips said that growth in the second half of this year will be at a 'slower pace', but added that it is 'on track' to meet its 'medium-term targets'.
The company will also launch a 1.5 bln eur share buyback programme in the third quarter.
Net profit was 301 mln eur, from 983 mln in the same quarter last year and below the 305-573 mln eur seen by analysts polled by AFX News.
Sales jumped 10 pct to 7.601 bln eur, from 7.087 bln, where analysts had pencilled in 7.370-7.429 bln.
Operating profit rose to 367 mln eur, up from a restated 158 mln, originally reported as 147 mln year, and well above the 258-342 mln anticipated.
Earnings per share fell to 0.26 eur from 0.78 eur the year earlier, and was at the lower end of the 0.26-0.30 eur seen by analysts.
In the second quarter of last year, Philips' earnings were boosted by 753 mln eur book profit due to the sale of Navteq shares. This quarter, Philips was aided by a 223 mln eur cash dividend from TSMC, in which Philips has a stake.
Philips incurred an 85 mln eur loss due to its LG.Philips LCD joint-venture with Korean company LG.
Philips Medical Systems saw sales grow by 9 pct compared to the second quarter of last year. Sales were 1.630 bln eur versus 1.498 bln. For the full year, Philips expects a 'high-single-digit', while operating margins are expected to 'show an improvement' compared to last year. Philips also expects to take one-off charges of approximately 85 mln eur in the fourth quarter due to the acquisition and integration of recent buy Intermagnetics.
Domestic Appliances and Personal Care saw sales rise by 13 pct compared to last year, or 572 mln eur versus 461 mln in the same period a year ago. Philips said growth was 'strong' in Europe and China. The acquisition of Avent Holdings, recently bought for 400 stg, will be completed in the third quarter, Philips added.
Consumer Electronics witnessed a 10 pct sales growth compared to the second quarter last year, or 2.484 bln eur now versus 2.259 bln then. Sales were driven by flat panel LCD television. Europe and Latin America showed double-digit growth, Philips said. However, the company expects sales growth 'to ease in the third quarter as the speed of transition to Flat TV decelerates'. It added that margins are expected to 'remain under pressure' as competitors and retailers clear their pipeline stock.
At Lighting, sales rose to 1.296 bln eur from 1.116 bln, a growth of 9 pct, with the Asia Pacific region showing a 13 pct growth.
Semiconductors, a division which Philips wants to either list separately or sell, sales rose 12 pct to 1.221 bln eur, from 1.088 bln a year ago. All units save Mobile & Personal reported higher sales; at Mobile & Personal, sales were 'flat' compared to last year. The total order book increased 5 pct, mainly in Europe, and compared with the first quarter. Philips expects Semiconductors to report a 'mid-to-high-single-digit sequential sales growth' in the third quarter.
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