Electronics giant Phillips had a rough quarter with weakness in Europe.
January 29, 2012- Philips, the Dutch electronics company, announced on Monday that it had posted a net loss for the fourth quarter of 2011. It blamed European market conditions and losses it has from discontinued operations.
The company posted a loss of $214 million on revenue of $8.85 billion for the quarter. Those figures compared to a profit of $611 million from sales of $8.6 billion in the same quarter a year ago. Philips announced its loss from just its TV business operations that were discontinued was $369 million.
Its CEO Frans van Houten was not upbeat for 2012 either. He did say the company remained behind its commitment to 2013 targets. However, he said caution needed to be noted because of the continual uncertainty in the world economy and in particular in Europe. He said the first six months of 2012 would be difficult.
Philips had warned earlier in January that market conditions were weak and would cut into its operating profits for the final quarter of 2011. To help stop profits from falling further, Philips will cut nearly 4,500 jobs, with 1,400 jobs to be cut in the Netherlands. The company also warned that its 2012 results would be influenced by restructuring charges as well.
Since April of 2011, when van Houten took over as CEO at Philips, the company has issued warnings on profits twice. Its market capitalization has fallen by 33% over the last 12 months.
