Philips CFO: Cost Savings Target Raised To More Than EUR600 Million
13 July 2009 - 5:30PM
Dow Jones News
Dutch electronics maker Royal Philips Electronics NV (PHIA.AE)
expects to realize more than EUR600 million in cost savings by the
end of 2009, Chief Financial Officer Pierre-Jean Sivignon said
during a conference call.
Philips previously expected over EUR500 million in annual cost
savings.
In the second half of 2009, Philips expects to realize EUR272
million in cost savings on an annual basis, while restructuring
costs are expected to amount to EUR145 million.
Philips Monday posted a 19% sales decline for the second
quarter, in line with analyst expectations. However, where analysts
expected a net loss, Philips was able to realize a EUR45 million
net profit due to cost savings and EUR90 million in gains from
insurance recoveries and legal settlements.
-By Robin van Daalen, Dow Jones Newswires; +31 20 571 52 01;
robin.vandaalen@dowjones.com