Blue chip Philips issues a profit warning

Philips has become the latest blue-chip company to warn that the US economic slowdown and weaknesses in the telecoms sector will hit its profits.

The Dutch-based company says its chip-making division will report disappointing first quarter figures, echoing similar warnings from competitors Intel and ASM Lithography.

Philips says like-for-like profits from its semiconductor division will drop by 10 per cent in the first three months of 2001 although revenues will rise by 7 per cent.

At mid-morning in Amsterdam Philips shares were down 3.8 per cent at euro 31.32 as investors took fright.

PA