Phillips Loses $78 Million in Q114 Apr, 2009 By: Chris Tribbey
Consumer electronics company Philips April 14 reported a first-quarter loss of $78 million, with drops across all of its product lines during the economic recession. Sales of Philips HDTVs and audio and visual components were down 35% during the quarter.
“In the first quarter of 2009, we have seen a significant further deterioration of our markets,” said Gerard Kleisterlee, president and CEO of Philips. “While the effects were felt most strongly in our activities that cater to the consumer market and to the construction and automotive industries, our Healthcare sales are now impacted as well. We expect no material change to this situation in [the second quarter].”
While the company is planning on introducing new HDTVs and Blu-ray Disc players in the next couple of months, Philips did cut 7,000 jobs during the quarter, and will trim nearly 6,000 more during the second quarter.
“We remain convinced that Philips will come out of this recession as a stronger company,” Kleisterlee said. “The portfolio of leading businesses we have built up is clearly not immune to the market woes we are now experiencing, but it is certainly more resilient than the portfolio we operated in the previous downturn.”