Philips plans to cut costs by 500 million euros and start a stock repurchase program

[High-tech LED News] Philips in the Netherlands recently announced that the company's second-quarter EBITA (earnings before interest, tax and amortization) fell to 370 million euros, after reducing the value of some assets, the company's net loss for the quarter was 1.34 billion euros , the biggest loss in nearly a decade.

Philips said it was due to high acquisitions in the medical and lighting sectors, rising raw material costs, falling consumer confidence, and a reduction in the budget for medical equipment due to construction and government market budgets. It is expected that short-term performance is difficult to improve, so it plans to cut another 500 million euros (about 703 million US dollars) to increase the 2013 profit margin.

Philips CEO Frans van Houten pointed out that the company's second-quarter results were affected by short-term operational challenges, weak market and high write-down costs, and the cost-cutting plan will accelerate Philips' recovery after 100 days of performance. .

Marriott also announced a 2 billion euro stock repurchase program and reduced the value of medical and lighting assets. Due to competition from low-cost companies in Asia, the company is facing a decline in demand and earnings in the lighting and basic consumer electronics markets.

Philips plans to update its 2015 performance targets in October this year in response to the restructuring of the TV business. By 2013, Philips' sales are expected to grow by 4% to 6%, and EBITA's profit margin will reach 12% by then.

Since Marriott’s appointment as CEO in April this year, Philips’ share price has fallen by 20% and its market value has shrunk to €17.5 billion. The share price of Siemens, which competes in the lighting market, has not changed much this year.

An analyst at the French securities firm believes that the latest cost reduction targets may not trigger a stock price rebound. But investors may wait for the results of the third quarter and reflect the latest financial goals of the TV business.

Marriott wants to make up for $200 million in additional expenses with an additional cost-compression program that is related to consumption and R&D. The company expects costs associated with restructuring and acquisitions in the third quarter to reach 30 million euros.

Philips will transform its TV business into a 70%-owned company owned by Hong Kong TPV Technology, emulating industrial giants such as Siemens to reduce investment in consumer electronics. The company's competitor Toshiba announced last week that it will transfer LCD TV factories in North America and Mexico to Compal Computer in Taiwan.

As the financial crisis has weighed on product demand, Philips has laid off 6,000 people to deal with the decline in profit margins. However, the company did not clearly disclose whether the cost reduction plan included layoffs.

Compatible with Fujifilm instax Wide cameras

For use with your wide camera.

ISO 800 film speed

With superb grain quality, Instax Film ensures vibrant colour and natural skin tones.

Wide Format

The unique super-wide format film allows you to fit more in your frame to capture large group shots, clear macro close-ups and far away landscapes.

Easy-to-Load Cartridge

Every cartridge is designed and labelled for easy loading and filled with 10 prints each.

Highly Stable

The new emulsion performs at temperatures as low as 5°C and as high as 40°C.

Notation area

Enables you to write captions in the margin below each image.

Instax Wide Film

Instax Wide Film,Fujifilm Instax Wide Film,Monochorme Instax Wide Film,Instax Wide Film Rainbow

GuangZhou CAIUL Digital Products CO,.LTD. , https://www.caiul-instax.com