However, it said it is looking for mid-single-digit sequential growth of its semiconductor sales during the third quarter as a modest recovery continues, though the company is well below the levels reached in 2004.
Philips said the last chip sales cycle peaked in the second quarter of 2004 when utilization rates were at 99%. The current level is 77%, up on the 75% recorded in the first quarter. The book-to-bill ratio at 1.0 is virtually unchanged from the 1.01 recorded at the end of the first quarter.
The semiconductor operation represents only 15% of an organization whose interests extend to medical systems, consumer electronics, and lighting. It said that compared to the first quarter, operating income from the semiconductor business benefited from stronger sales activity and the stronger dollar.
