Philips posts 94-percent drop in Q2 net profit
The dip in net profit of EUR 45 million was higher than what experts have predicted.The Hague – Dutch electronics giant Philips on Monday reported a net profit of EUR 45 million in the second quarter of 2009, a drop of 94 percent compared to the same period last year.
The results were higher than expected by analysts contacted by Dow Jones Newswires, who had predicted a net loss of EUR 125 million after a net profit of EUR 732 million in the second quarter of 2008.
Philips turnover stood at EUR 5.23 billion in the second quarter of 2009, down 19 percent from EUR 6.46 billion in the same period last year, due to "continuing weakness in consumer and professional markets", the group said.
"We did not see a material improvement in consumer or professional markets in the past three months," said chief executive Gerard Kleisterlee in a statement.
But he added: "During the quarter we started to see the positive impact of our strict cost management on our results."
Philips announced in January that it would cut 6,000 jobs worldwide to cope with the global slowdown.
A company spokesman said all divisions would be affected by the job cuts.
AFP / Expatica