Royal Philips Electronics, record loss of 1,3 billion dollars

The Dutch manufacturer of electronic equipments and lighting strategy, Royal Philips Electronics NV, announced on Monday that the company had record loss in the second trimester of 1,3 billion dollars. 

Royal Philips Electronics

According to the company, the cause for these results is the slow straightening of the companies, investors and people from the emergency period and also the active’s depreciation, according to Reuters.

The General Manager of Phillips, Frans van Houten, said that the 1,3 billion loss is a product of the operational difficulties, the weaker markets and the damages that the depreciations provoked.

The company launched a program particularly for the cost’s decrease, of 500 million Euros, and another one for share’s redemptions, of two billion dollars.

In April June period, this year, Phillips had active’s loss into the health dissection and the lighting devices one, that drawn 1.4 billion Euros damages. Last month, Philips warned that they are expecting such a loss of the profit for the second trimester because of the weak demand of their products from the Western Europe market.

The lighting division from Philips is the largest from the entire world. According to the company’s estimations, the segment will have a little progress of the sells, comparing with the fore estimations. The operational profits before the paying off will be of almost 75 million Euros, not like 193 million Euros, in the first trimester of this year.

Also, the division of the electronic devices for the domestic use is confronting with the same position due the weak demand and the decline of the license’s incomes.

Philips is the biggest produces for the lighting devices and electronic equipments in the world. More, the company holds the third position in the top of the best medical devices manufacturer and the biggest appliances devices from Europe.

From 2008 or even early on, the company had a slow but constant decrease of the profit and even though the strategy is encouraging the results that come in every trimester aren’t very optimistically.

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