AAPL Stock: 118.03 ( -0.85 )

Printed from

Philips takes $1.8 billion loss, trims goals

updated 03:15 pm EDT, Mon July 18, 2011

Philips posts $1.8 billion quarterly loss

Philips on Monday revealed a quarterly loss of 1.3 billion euros ($1.8 billion) after a 1.4 billion euro writedown on healthcare and lighting acquisitions. The company otherwise faced rising costs of raw materials, dropping consumer confidence and government cutbacks in the healthcare sector both in Europe and the US. At the same time, Philips gave a weak outlook for the next two quarters and lowered the profit margin targets for its three core businesses for 2013. The company also promised it would cut costs by 500 million euros ($701 million).

In June, the company warned of lower second-quarter profits and slowing sales growth in its lighting business and consumer electronics divisions due to lower European demand. Siemens, which competes with Philips in the medical equipment and lighting products markets, also warned of slower than usual growth in June.

The 500 million euro cost-cutting scheme will extend into 2014 and focus on the company's high overhead costs but it won't involve shutting or selling businesses. A two billion euro share buyback program due for completion next year was also announced.

Chief executive Frans Van Houten, who took over the position in April of this year, set a sales goal growth of between 4 and 6 percent on Monday, with earnings for the group before interest, tax and amortization margins at 10-12 percent.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented