As Mr. Geithner would say....Welcome to the Recovery!!!
AMSTERDAM - Royal Philips Electronics NV, the world's largest lighting maker, said Monday it will slash 4,500 jobs after third quarter earnings fell sharply, hurt by a strong euro, weaker margins and more losses at its television division, which it intends to sell.
Net profit was €74 million ($102 million) from €524 million in the same period a year ago, the company said. Revenues declined 1.3 per cent to €5.39 billion.Philips said sales would have risen 6 per cent if not for the strong euro.
Philips is responding by cutting jobs, which it says will help it save €800 million annually.
"We do not expect to realize a material performance improvement in the near term," said CEO Frans van Houten in a statement. He repeated previous financial targets of at least 4 per cent sales growth and 10 per cent operating margins by 2013.
The company said growth was generally strong in emerging markets and weak in developed economies. Analysts said the results were in line with expectations and shares rose 2.6 per cent to €15.19 in Amsterdam in an overall higher market.In the lighting arm, operating profit was €110 million, down from €193 million, which Philips attributed to weaker consumer sales and higher raw materials costs.