Dutch Philips Electronics said this morning it expected to make a net loss in the second quarter and would cut up to 7,000 jobs after weak computer and telecoms markets sent profits diving in the first quarter.
A company spokesman told
ireland.com
no redundancies would be sought from the 600 people employed in Ireland. Phillips has accounting, commercial and software divisions in the State.
Philips is Europe's largest maker of consumer electronics and lighting and number three in semiconductors. It reported a first quarter net income of euro 106 million ($93.9 million) from a net figure excluding one-offs of euro 614 million a year earlier.
Analysts had expected the Dutch company to report a first quarter net profit from ordinary operations of euro 178 to 370 million with consensus at euro 275 million.
Philips said in a statement: "We see no signs that the slowdown in economic activity in certain parts of the world, particularly the USA, is near its end. This will continue to cause low growth and high price erosion for some of the markets in which Philips is active."
Philips said net income before special charges was likely to be negative in the second quarter.
To address the situation Philips said it would bring costs down with a headcount reduction of between 6,000 and 7,000 people.
Philips also said it was cutting back its capital expenditure to euro 2.5 billion which would be reduced further if needed.
Additional reporting
