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Philips reports 1.3bn euros quarterly loss | Philips reports 1.3bn euros quarterly loss |
(about 3 hours later) | |
Electronics giant Philips has revealed a 1.3bn euros ($1.83bn; £1.13bn) quarterly net loss, and has said it will cut costs by 500m euros. | Electronics giant Philips has revealed a 1.3bn euros ($1.83bn; £1.13bn) quarterly net loss, and has said it will cut costs by 500m euros. |
It put the loss down to slower-than-expected economic recovery. A year ago it made a net profit of 262m euros. | It put the loss down to slower-than-expected economic recovery. A year ago it made a net profit of 262m euros. |
Write-downs at its healthcare and lighting divisions came to 1.4bn euros. | |
It said "results were impacted by near-term operational challenges, weaker markets and a significant impairment charge". | It said "results were impacted by near-term operational challenges, weaker markets and a significant impairment charge". |
In May it warned of sharply lower second-quarter profits and slowing sales growth. | In May it warned of sharply lower second-quarter profits and slowing sales growth. |
Staffing question | |
Philips expects to complete the cost-cutting work during 2012. | |
The Dutch company, which employs 119,000 worldwide, gave no details of any potential impact on staffing numbers. | |
Philips chief executive Frans van Houten said he did not expect its performance to improve "in the near term". | |
Shares in the company have fallen 30% of the past year. | |
Electronics sector analyst Hans Slob of Rabobank said: "This is a wider signal that the consumer is not really recovering." | |
Philips has struggled in recent years against Asian rivals, especially South Korea's LG and Samsung, who have lower manufacturing costs. |
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