Philips Sticks to Targets Amid Chip Sector Slump

Dutch Philips Electronics reiterated its medium-term targets despite weakness in its semiconductor unit because of a deepening slump in the industry. Chief Financial Officer Jan Hommen said latest estimates pointed to worldwide revenue in the semiconductor industry to be down about 20% in 2001 from 2000 levels, according to the company.

Philips expects to outperform the semiconductor industry by 5%, Hommen said at the CSFB European Technology Conference in Barcelona.

“It seems things are getting worse nonstop” for the semiconductor industry, analyst Oscar Poos at Bank Insinger de Beaufort told Bloomberg News.

Philips also said it’s close to announcing a strategic decision on its money-losing mobile phone handset business.

U.S. shares of Philips closed up $1.88 at $32.25 in over-the-counter trading.