Philips Electronics Posts Strong 3Q05, Looks for Medical Acquisitions (PHG 3Q05 Conf Call Quotes)

 |  About: Koninklijke Philips NV (PHG)

Dutch conglomerate Philips Electronics (ticker: PHG) reported impressive sales (7.63 billion euros) and profit (1.43 billion euros) numbers for 3Q05, beating analyst estimates on both. In a conference call, Philips CFO Pierre-Jean Sivignon commented on market share vs. market growth in consumer electronics:

CE is a fully global business… Latin America, U.S., Europe and very much Asia…. in none of those territories the economic conditions were fantastic actually. Beside Asia the rest is quite dull. Maybe Eastern Europe is a bit exciting but the rest is actually not very exciting. So all-in-all I would see that our revenue growth this quarter is market share.

… we've introduced new products. We have introduced in particular a new range of flat panel, LCD televisions, and that seems to have an impact. And if I take the example of United States… we've gained some market share. So I would say probably more market share than anything else for this particular quarter.

And on possible acquisitions in the emerging (and high margin) market of Consumer Health and Wellness:

… what we started doing is two things. We have entered an initiative which should start generating revenue as early as next year and these are either actually products which we have re-assigned internally or existing technology that we had internally that we will start really promoting, pushing and investing on to generate revenue streams for next year…

The other thing we've done is that we've looked at actually a few acquisitions… we are looking at a few targets in that domain.

(Quotes are from the CCBN StreetEvents transcript.)