ON Semiconductor Corp., which had a net loss of $831 million in 2001, said it expects a return to profit this year on the strength of demand for its chips, which manage the flow of electricity in everything from computers to air conditioners.The company has a plant in East Greenwich.
“We have some very strong objectives that will return us to profit,” Chief Executive Officer Steve Hanson said in an interview. “Most analysts don’t expect us to be profitable until sometime in the middle of next year.”
Earnings will also be boosted by a rebound in consumer spending on video-game consoles such as Sony Corp.’s PlayStation2 and DVD players, Hanson said. ON Semiconductor makes 12 chips that are used in the PlayStation2, he said.
ON Semiconductor’s fiscal first-quarter loss narrowed to $50 million from $159.4 million a year ago. The company plans to release second-quarter results on July 22 after the close of markets in the U.S.
Phoenix, Arizona-based ON Semiconductor earlier this week said it expects fiscal second-quarter sales to exceed its earlier estimates as demand for its chips continues to rise.
