Philips sees low demand

Philips sees low demand

EINDHOVEN, Netherlands (Reuters): Philips Electronics NV said
yesterday Asian markets would experience weakening demand in
1998.

"We expect that in 1998 local markets in the countries most
affected by the currency crisis - Indonesia, South Korea,
Thailand, Malaysia and the Philippines - will feel the impact of
weakening demand," Philips said in its results statement.

It added the commercial activities in these markets accounted
for less than 4 percent of total group turnover.

So far, the currency turmoil of a number of Southeast Asian
countries had hardly led to any losses on Philips' foreign
currency positions.

"In a number of Philips Organizations which are mainly
carrying out business for the local market, the major part of
their foreign currency risks had been covered by forward
positions," Philips said.