Strong demand has enabled Royal Philips Electronics NV to haul its semiconductor operation out of the red. In its second quarter to June 30 it recorded an operating profit of 143m euros ($175.9m), up from a loss of 139m euros ($170.9m) on revenue 27.3% higher at 1.4bn euros ($1.7bn).
It said wafer fab utilization rate rose to 99% in the quarter compared with 90% in the previous three months and the book-to-bill ratio at the end of the quarter was 1.13, slightly down on the 1.25 at the end of March.
Philips forecast low single-digit sequential revenue increase in the current third quarter but warned it faces restructuring charges in the second half of the year in connection with reorganization of its plant at Nijmegen in the Netherlands.
LG Philips LCD Co Ltd, the flat screen joint venture in which Philips has a 50% stake, reported second-quarter operating income up 264.5% at 503m euros ($618.7m) on revenue 74.6% higher at 1.66bn euros ($2bn). The company is planning to raise $1.2bn in an IPO that will reduce Philips’ stake to 43.2%, or 42.2% if the over-allotment options are exercised in full.