Two European giants fail to stop their slides

Article Abstract:

Dutch consumer electronics company Philips NV and French computer vendor Groupe Bull SA announce large 1992 losses and new layoff plans due to the worsening European recession. Philips reports a $489 million loss on sales of $31.8 billion, up 3 percent from $30.9 billion in 1991. A $652.2 million restructuring charge to cover planned layoffs of 15,000 of its 250,000 workers adds to the loss. Philips had profits of $608.6 million in 1991. Groupe Bull for its part posts a $892 million loss on sales of $5.7 billion, down 9.8 percent from 1991. The loss includes a $462 million restructuring charge to cover planned layoffs of 3,000 of Bull's 35,000 workers. The company was hoping to break even on its operations in 1992. It reports a $121 million operating loss instead, down from $205 million in 1991. Bull owns US computer maker Zenith Data Systems.

Household audio and video equipment, Consumer electronics industry, Sales, Philips Gloeilampenfabrieken N.V., Recession

---

French computer maker sees $1 billion deficit

Article Abstract:

Compagnie des Machines Bull, France's largest computer maker, is expected to announce losses for 1990 of more than $1 billion. The company, Europe's second largest computer manufacturer and the ninth-largest in the world, will report an operating deficit of about $600 million and a restructuring charge of $450 million. Analysts say that the company has failed to keep up with the computer market, and the company did not react quickly enough to the shift from mainframe-based computing environments to low-cost microcomputer-based systems. The restructuring charge stems from the company's plans to close seven of its 13 factories and to reduce a 44,000 employee work force by over 5,000. Analysts say the company's problems involve overhead and a need to reorganize production.

Planning, France, Revenue, Market Analysis, Fourth Quarter

---

Europe's electronics rescue plan

Article Abstract:

The European Community (EC) steps up efforts to support the continent's computer- and semiconductor industries in world markets. Europe lags substantially behind the US and Japan in both industries and officials believe it is time for government to step in. France has given $700 million in capital to state-owned Groupe Bull and has pledged an additional $400 million for research. Groupe Bull, Philips Electronics of the Netherlands and Siemens-Nixdorf of Germany have all posted losses in recent years and are steadily losing their market share. EC officials believe that European companies can improve their market share by the year 2000 if they cooperate with each other.

Semiconductors and related devices, Semiconductor industry, Economic policy, European Union, Market share, International markets, Government Funding, Foreign Competition, World Market, Government aid, European Community

Similar abstracts:

• Abstracts: The man who won't sell out. The man who put to rest the ghosts of election past. If it was good enough for Bible Bill
• Abstracts: When it's time to pay the piper electronically. Borland's new offering: worth the wait?
• Abstracts: Putting yourself into the picture. An instant librarian
• Abstracts: Do offices want a Rolls-Royce of color printers? The vital video adapter links brain and display
• Abstracts: Digital returns to PC wars; Intel and Microsoft are partners; the clone makers are role models

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.