For second quarter 2003, the Philips Group recorded a net profit of EUR 42 million (U.S. $47.4 million), or EUR 0.03 per share, compared to a loss of EUR 1,355 million, or EUR 1.07 per share, in the same period last year.
Second quarter 2003 included special items of positive EUR 5 million, compared to last year’s special items, which amounted to negative EUR 1,539 million. The company reported that sales decreased by 18 percent over the same period last year, negatively impacted by the weakening of the U.S. dollar and related currencies (13 percent), the downward effect from various divestments in 2002 (4 percent), and lower consumer spending.
Income from operations was a loss of EUR 26 million, including EUR 84 million in net special charges (before tax), versus a profit of EUR 165 million last year, which included EUR 96 million in net special gains (before tax). Cash flow from operating activities was reported as an inflow of EUR 148 million. During the quarter, the net debt position decreased by EUR 133 million to a level of EUR 5.4 billion, said the company.
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