Surprise loss by Philips
Source: Agencies |
July 19, 2011, Tuesday
|
Print Edition
Print Edition
Philips posted a surprise 1.3 billion euro (US$1.8 billion) quarterly net loss, just weeks after profit warnings at two key divisions, due to weak consumer demand in Europe and the United States.
The Dutch group yesterday said it booked a 1.4 billion euro charge in the second quarter from writedowns on acquisitions at its healthcare and lighting divisions, reflecting a weaker market outlook.
Last month Philips warned of lower second-quarter profits and slowing sales growth at its lighting business and consumer division, citing tepid demand.
"This is a wider signal that the consumer is not really recovering," said Hans Slob, analyst at Rabobank.
Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer.
"The world seems to be riskier place with a lot of volatility and overall GDP growth that has been slightly set back," Philips Chief Executive Frans van Houten said.
Philips yesterday said it would cut 500 million euros of costs through 2014 and announced a 2 billion euro share buyback program to be completed in the next year.
Van Houten said no businesses would be shut or sold.
The Dutch group yesterday said it booked a 1.4 billion euro charge in the second quarter from writedowns on acquisitions at its healthcare and lighting divisions, reflecting a weaker market outlook.
Last month Philips warned of lower second-quarter profits and slowing sales growth at its lighting business and consumer division, citing tepid demand.
"This is a wider signal that the consumer is not really recovering," said Hans Slob, analyst at Rabobank.
Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer.
"The world seems to be riskier place with a lot of volatility and overall GDP growth that has been slightly set back," Philips Chief Executive Frans van Houten said.
Philips yesterday said it would cut 500 million euros of costs through 2014 and announced a 2 billion euro share buyback program to be completed in the next year.
Van Houten said no businesses would be shut or sold.
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