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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (52643)	9/20/2001 11:34:02 AM
From: Proud_Infidel	Respond to of 70976

Philips Semi plans more cuts with sales falling 17-18% in Q3 from Q2 Dutch company said it's too early to determine impact of terrorist attacks in U.S. Semiconductor Business News (09/20/01 11:17 a.m. EST) AMSTERDAM -- Royal Philips Electronics N.V. here today told analysts that it now expects semiconductor revenues to sequentially drop 17-to-18% in the third quarter from 1.13 billion euros ($1.04 billion) in Q2 due to the industry's downturn. Philips officials said the company was planning to take more than $100 million in charges for layoffs and restructuring of semiconductor operations during the last two quarters of 2001. The Dutch company also said it was too early to assess the impact of last week's terrorist attacks in the United States. Although transportation of products was interrupted for several days last week while airline traffic was shut down, there was enough material in the pipeline and no customers have been impacted, Philips said. Material flow is now back to normal, it added. But the weak business conditions continue in semiconductor markets. "We will take charges for restructuring and headcount reduction costs in the third and fourth quarters of 20 million and 90 million euros, respectively, as we continue to reduce our cost base and rationalize capacity," said Arthur van der Poel, member of Philips' board of management. Van der Poel said inventory reductions throughout the industry appear to be coming to an end and order intake is improving, albeit with short delivery times. Consequentially, the Philips Semiconductors subsidiary said it expects factory utilization rates in the fourth quarter to be higher than Q3. Philips Semiconductors posted an operating loss of 225 million euros ($207 million) in the second quarter.