Royal Philips Electronics NV, Europe’s largest consumer-electronics maker, reported its biggest quarterly profit in more than three years on flat-screen and semiconductor sales, and predicted growth in the second half.

Royal Philips Electronics NV expects to achieve additional cost savings of €250m in 2004, chief executive Gerard Kleisterlee said at a news conference on annual results.

Royal Philips Electronics NV said it is considering the offering of up to 500 million Taiwan Semiconductor Manufacturing Co Ltd (TSMC) shares, bringing its stake in TSMC down to about 19.1% from its current 21.5% if all shares are placed.