N.V. Philips unveils first phase of plan to scale back its computer operations

Article Abstract:

Philips Gloeilampenfabrieken NV undergoes reorganization of its computer division and to reduce costs and slow recent losses of $80 million in the 1st qtr of 1990. This restructuring involves a work force reduction of 210 at its data systems product group in the Netherlands. Philips executives indicate that profits are expected to be very low for 1990 because of the enormous losses in computers. Other plans for streamlining the troubled division include putting together computer systems for specific industry applications rather than developing its own hardware technology. The new emphasis is on meeting customer needs through the use of industry standards instead of proprietary systems. Management and other changes are expected. The computer division employs about 15,500 of Philips' workforce of nearly 300,000 and posted estimated 1989 sales of $1.7 billion.

Electronic computers, Planning, Computer industry, Human resource management, Corporate reorganizations, Business losses, Cost control, Marketing Strategy, Cost Reduction, Reorganization, Work Force Reduction

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N.V. Philips net declined 84% in 2nd quarter; Dutch electronics firm cites component sales, tight economy in Brazil

Article Abstract:

N.V. Philips posted a sharp dip in 1990 2nd qtr earnings with net profit plunging 84 percent to $21 million, or 13 Dutch cents a share, from $131 million, or 91 Dutch cents a share, during the same period in 1989. The Dutch electronics company reaffirmed that it expects huge losses for the full year of 1990. Sales for the 2nd qtr of 1990 went down to 13.54 billion guilders from 13.55 billion guilders from the same period in 1989. Net profits for the first half of 1990 have slipped 19 percent to 373 million guilders, or 1.34 guilders a share, from 458 million guilders, or 1.77 guilders a share during the same period in 1989. Philips chmn Jan Timmer announced plans to cut 10,000 jobs, which represents 3.5 percent of the company's world-wide total, during the second half of 1990.

Electronics industry

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N.V. Philips sees profit declining in 2nd period, 'very low' for year: amid management shift, warning comes in bid to regain credibility

Article Abstract:

N.V. Philips' new management team reports the firms' 2nd qtr 1990 profit will fall 'appreciably,' and profit for the entire year will be 'very low.' According to one observer the firm 'is in a heavy storm,' and the new management team wants to get the bad news over with as soon as possible in an effort to regain credibility among investors. The company's biggest problem areas seem to be in computers and semiconductors. The company claims these two divisions have generated losses of hundreds of millions of guilders last year. In these areas Philips is the victim of industrywide slumps and shrinking margins. According to market estimates, Philips owns 2.2 percent of the European microcomputer market.

Consumer electronics industry, Financial Analysis Software, Outlook

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