InfoAnda - Philips dims outlook after shock 1.3 billion euro loss |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

More British deaths as PM says Afghan mission 'vital' | 17 August 2009
Prosecutors: NYC court escapee had disguises, $4K | 3 October 2009
Saudi woman faces flogging for driving: Amnesty | | 28 September 2011

US-ENTERTAINMENT Summary | 1 March 2011

Forum Views () Forum Replies ()

Read more with google mobile : Philips dims outlook after shock 1.3 billion euro loss |

Edition: U.S. Article Comments (0) Video Follow Reuters Facebook Twitter RSS YouTube Read Worst heatwave in years grips Midwest, moving east 17 Jul 2011 Lawyer says Egypt's Mubarak in coma, TV denies | 17 Jul 2011 Ratings agencies rattle cages in U.S., Europe 17 Jul 2011 Democrats, Republicans still at odds on debt ceiling | 11:33am EDT Moody's suggests U.S. eliminate debt ceiling 10:33am EDT Discussed 102 Obama and lawmakers regroup to seek debt deal 100 Obama asks lawmakers to gauge support for debt deal 59 Obama eyes more deficit talks with no deal in sight Watched Flying sphere goes where man fears to tread Thu, Jul 14 2011 Coalition forces raid Taliban stronghold Sun, Jul 17 2011 Highway project in Los Angeles Sun, Jul 17 2011 Philips dims outlook after shock 1.3 billion euro loss Tweet Share this Email Print Related News World economy to keep strong but risks abound Thu, Jul 14 2011 Swiss stocks - Factors to watch on July 14 Thu, Jul 14 2011 Europe considers Greek default, leaders to meet Tue, Jul 12 2011 NYSE shareholders back D.Boerse deal Thu, Jul 7 2011 Euro ends 6 day rally; Moody's cuts Portugal rating Tue, Jul 5 2011 Analysis & Opinion Italy can save itself to save euro zone Berlusconi really must go Related Topics Technology » Related Video Philips must become more entrepreneurial, says CEO 10:35am EDT Teamsters Mark A. Owsianiak (L) and Mark Bishop put up a sign at the Philips Electonics booth before the Consumer Electronics Show (CES) at the Las Vegas Convention Center January 3, 2008. Credit: Reuters/Las Vegas Sun/Steve Marcus By Gilbert Kreijger AMSTERDAM | Mon Jul 18, 2011 9:18am EDT AMSTERDAM (Reuters) - Philips flagged a grim outlook after a surprise quarterly loss that was driven by writedowns on recent acquisitions to reflect weak consumer demand in Europe and the United States. Philips -- the world's biggest lighting firm, a top three hospital equipment maker, and Europe's biggest consumer electronics producer -- has been hit by rising raw material costs, sagging consumer confidence, sluggish construction markets and government budget cuts in the healthcare sector. On Monday, the Dutch group announced an unexpected 1.4 billion euro writedown on healthcare and lighting acquisitions that dragged it to a 1.3 billion euro ($1.8 billion) second-quarter net loss, just weeks after profit warnings at two key divisions. Philips, which is heavily exposed to the mature European and U.S. markets, has highlighted the need to expand in the fast-growing Asian and emerging economies. It gave a bleak outlook on Monday for the next two quarters, lowered the profit margin targets for its three core businesses for 2013, and said it would cut costs by 500 million euros. The measures may help to restore some investor faith in Philips's new management. Frans van Houten, a restructuring expert who took over as chief executive in April, has won mixed reviews from investors, bankers and analysts, as some felt he had not responded fast enough to address Philips' woes. "This gives me confidence. We have a new management since a few months and they indicate that they have completed the internal review process," said Charles de Kock, asset manager at Delta Lloyd Asset Management, which owns Philips shares, adding that the share buyback and cost-cutting measures were positive. German engineering conglomerate Siemens, which competes with Philips' medical equipment and lighting products, last month warned of slower growth. Philips also warned in June of sharply lower second-quarter profits and slowing sales growth at both its lighting business and its toasters-to-shavers consumer division, citing weak consumer demand in Europe. "We do not expect a material performance improvement in the near term as operational risks and issues remain, and also considering the current uncertain economic environment," Van Houten said in a statement on Monday. Philips said the 1.4 billion euro writedown reflected the weaker market outlook and lower profitability forecasts at four units. It includes a 450 million euro charge at its Respironics unit, a U.S. sleep therapy products maker that it bought for $5.1 billion in 2007. Rabobank analyst Hans Slob said the results were "a wider signal that the consumer is not really recovering," adding later in a research note that the impairment charges were an admission that Philips had overpaid for the acquisitions. COST CUTTING The 500 million euros cost-savings program will run into 2014 and address high overheads, but Van Houten said Philips would not shut or sell any of its businesses. Some bankers and analysts have said that Philips should get out of the entire consumer electronics division because it has struggled to compete with lower-cost Asian makers of consumer electronics. Philips also announced a 2 billion euro share buyback program, which will be completed in the next year. The cost cuts and buyback initially boosted its shares, which opened 2.5 percent higher, analysts said. But the realization that Philips had reduced its margin forecasts for its three core divisions sent shares down 0.8 percent by midday. Its shares have fallen 30 percent in the past twelve months, versus a 16.5 percent rise of the STOXX Europe 600 Personal & Household Goods index. Van Houten, who scrapped Philips' earlier growth targets when he took over as chief executive in April, set new medium-term goals for 2013 on Monday, including sales growth of between 4-6 percent, and earnings before interest, tax and amortization (EBITA) margins of 10-12 percent for the group. Philips competes with Samsung and LG Electronics among others in consumer electronics, and with General Electric and Siemens in the hospital and lighting markets. (Additional reporting by Roberta B. Cowan; Editing by Sara Webb and Erica Billingham) Technology Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Monday, 18 July 2011
Pressure rises for Greek debt buy-back, swap |
Carlos clutch: Guillen's RBI single lifts Tigers over White Sox in series finale
MP, top Karzai aide feared killed: police official |
White Sox bid for 1,000th career victory over Tigers; lead 3-1 in fifth
Darren Clarke clutches Claret, superb play earns him 140th Open championship
Lawyer says Egypt's Mubarak in coma, TV denies |
Mark Cavendish adds another Tour stage; Voeckler holds on to lead.
South Bend braces for economic hit of losing College Football Hall of Fame
Tunisian police fire in air to disperse rioters |
U.S. Consulate issues warning to Americans in Chihuahua
California public schools must now teach gay history
Trichet: ECB would reject Greek bonds as collateral |
Libya rebels fighting to capture eastern oil town |
China assails U.S. over Dalai Lama, fallout seen limited |
Syria forces besiege town after defections: residents |
Lawyer says Egypt's Mubarak in coma, TV denies |
Japanese contaminated beef sold in and around Tokyo |
MP, top Karzai aide feared killed: police official |
Courtney Cox To Write Beauty Blog
Thousands rally in Morocco over reform plan |
NBC's Fashion Star Adds Nicole Richie and John Varvatos as Mentors
Taylor Swift's New Fragrance Wonderstuck Coming in October
Retired colonel calls for Aquino overthrow in video, gets no support
Peru's Humala says to reappoint central banker |
Rosie Huntington-Whiteley Bares (Almost) All for Burberry Body
Mary Kate and Ashley Olsen Add Handbags to Their Line at Barneys
Karzai senior adviser, lawmaker assassinated
Philippine adds 1967-built cutter to back up 1943-built warship for Spratlys patrol
Teen Mom Father Gary Shirley Makes Twitter Account for His Toddler
Casey Anthony leaves jail
Taiwan's HTC shares tumble after Apple ruling |
Ivanka Trump, husband welcome new baby girl |
Beckham baby debuts on Facebook |
Iraq eyes U.S. trainers, not troops, after 2011 |
Petraeus hands over command in Afghanistan, to lead CIA |
Lakers forward Lamar Odom involved in car accident
Russia says militant attack foiled in Moscow |
Understanding Nigeria's Boko Haram radicals
'Harry Potter and the Deathly Hallows: Part 2' sets record for best opening weekend
Robbers hold up guests at luxury Rio hotel |
Treatment as prevention – the tough road ahead
More autonomy, rights for ethnic Gurkhas
South Africa searches for Mandela's moral compass |
Marc Anthony addresses split with Jennifer Lopez during concert
Pakistanis seek arrest of ex-CIA legal chief over drone attacks |
Cash Cab kills 61-year-old Vancouver pedestrian
Rising shelter needs as more flee Kurram
Pakistan Taliban release video showing forces' execution |
Orlando Magic star Dwight Howard mulling overseas move
Political leadership key to male circumcision success
Trial of Egypt's Mubarak may be on Red Sea: sources |
Philips dims outlook after shock 1.3 billion euro loss |
General Dynamics buys cloud computing service firm |
Mobile devices to lead consumer electronics growth: report |
New app connects art lovers to N.Y.'s Lincoln Center |
Russia lures Hollywood, raising bar for local film |
Harry Potter plagiarism case dismissed in UK |
Cheap Trick escape as Ottawa rock stage collapses |
Breaking Bad: Questions answered in season premiere |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01