Philips CEO To boost profits by cutting costs

Afternoon of July 8, Philips’s new CEO Frans van Houten (Frans van Houten) is preparing for Philips for more substantial revisions, with private equity firms KKR and the experience of cooperation to reduce costs.

Dutch trade union FNV Bondgenoten officials 罗恩范巴登 (Ron van Baden), said, Philips will be adjusted management, reduce office and information technology expenses. Some analysts said that Philips need to save at least a 300 million euros (4.3 billion U.S. dollars) to offset higher expenses. Philips spokesman Zhu Manchester Ackerman Adams (Joost Akkermans) said they will soon announce decisive measures.

Van Houten, NXP was the CEO, who had by including KKR’s private equity funds, including the control. Marriott London is currently facing to enhance profits and sales growth challenges, and now Western Europe and the traditional lighting of electronic equipment market growth is slow, they also face competition from low-cost manufacturers in Asia. When van Houten, 22, last month issued the second quarter of lighting and consumer electronics sector profits fell after the warning, Philips shares fell 8.8%.

Baden said: “Philips has been made taking into account the layoffs, management of specific product groups or should be removed, Philips employees will now experience the Marriott London lessons learned from KKR.”

Since the CEO Frans van Houten, Philips has been appointed, Philips shares have fallen 23 percent, reduce the market value to 177 billion euros. Swiss asset management company KeplerCapitalMarkets analyst 皮特奥罗森 (Peter Olofsen) said, Philips will be released in the July 18 second-quarter earnings reports, cost reduction plan will not share prices rebound, investors are more willing to look forward to the third quarter earnings, financial targets will lead to the release of the Philips TV to renounce unprofitable operations such decisions. (Xiaoming)

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