Philips issues low profit warning

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CEO of the Dutch electronics company plans restructuring due to the weakened economy.

4 December 2008

AMSTERDAM - Philips, the Dutch electronics company, issued a low profit warning for the fourth quarter.

CEO Gerard Kleisterlee said the company hoped to double its profit per share by 2010 but admitted that the current financial crisis meant this would not happen. In particular, the company's consumer products and lighting divisions are suffering from reduced customer demand.

Philips is also being forced to write off EUR 1.1 billion due to the reduced value of some of its business interests. These include the South Korean screen manufacturer LG and semiconductor producer NXP.

It is also paying EUR 340 million for reorganisation intended to reduce costs and help the company weather the crisis.

[Radio Netherlands / Expatica]

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