Philips to eliminate 35,000 to 45,000 jobs by end of '91; disclosure follows cuts set in July; payouts halted, wider loss expected

Article Abstract:

NV Philips plans to eliminate 35,000 to 45,000 jobs by the end of 1991 in an effort to return to profitability. The planned layoff is in addition to the 10,000 layoffs announced in Jul 1990. The Dutch electronics giant will not pay any dividends for 1990, and the loss for the year is expected to exceed the two billion guilders, or $1.81 billion, that was forecast in Jul 1990. Philips reports a loss of $2.16 billion guilders for the 3rd qtr of 1990 and says that it hopes to return to profitability by late 1991 or early 1992. The company did not give any details on where it would cut the estimated 16 percent of its workforce but analysts were impressed by announcement and believe that Philips is serious about returning to profitability.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Management, Business planning, Layoffs, Philips Gloeilampenfabrieken N.V., Layoff, Electronic Industry, Financial Stability

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Philips Electronics profit surged to $282 million in second quarter; results, which included big one-time gain, were better than expected

Article Abstract:

Philips Electronics NV reports strong earnings in the 2nd qtr of 1991. Net profit is 552 million guilders ($282 million), or 1.85 guilders a share, compared with 37 million guilders, or 13 Dutch cents a share, in the same period in 1990. A one-time gain of 365 million guilders in the most recent quarter is accounted for by Philips's sale of a 47 percent investment in Whirlpool International BV in Jul 1991. Results in the 2nd qtr are seen as evidence that the company's cost-cutting reorganization efforts are achieving results. Philips's shares are up 4.2 percent on the Amsterdam Stock Exchange, closing at 34.40 guilders on Aug 1, 1991.

Electronic Components and Accessories, Netherlands, Finance, Profits, Koninklijke Philips Electronics N.V., Cost control, Cost Reduction, Reorganization, Profit, Stock, Financial Report, Second Quarter

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