Philips warns consumer electronics sales slow
Dutch electronics giant Philips warned on Wednesday that falling sales of consumer electronics in the second quarter would hit earnings and promised decisive actions including cost cutting.
The company said it expects a sales decline in the low single digits in its consumer lifestyle division, which includes electronics and personal care, and that it would produce earnings before interest, tax and amortisation charges of approximately 50 million euros ($72 million) in the quarter.
The lighting segment was also hit by weaker consumer and construction demand, with sales growth in the low single digits. EBITDA earnings are expected to come in at 85 million euros in the quarter.
"Additionally, the company will announce further decisive actions shortly, including a company-wide cost reduction programme as part of the already launched Accelerate' performance improvement programme," said Philips.
© 2011 AFP