Royal Philips Electronics reported a net loss of €69 million for the first quarter.
But the company said it is on track with its cost-cutting plans amid a depressed market environment.
In the first quarter of 2002 Philips reported a profit of €9 million. Analysts had forecast a net loss in the quarter this year of €83 million to €126 million.
Sales fell 14 per cent year-on-year to €6.499 billion, with currencies taking 11 per cent off revenues and volumes rising 8 per cent.
Philips sees second quarter semiconductor sales up 7 to 10 per cent versus the first quarter, according to a presentation for a conference call due later thismorning.
The company managed a profit at the operating level of €32 million, against a profit of €73 million a year earlier. This includes €31 million in one-time charges compared with €58 million in one-time gains a year earlier. Pension costs were up €78 million from a year ago.
The company said it achieved €20 million in overhead cost savings in the quarter while medical systems reduced expenses by €41 million. The medical division remains on track for €350 million in annual savings by year-end, Philips said.
The semiconductors division was largely responsible for the company's loss in the quarter.
AFP