Investors tune in to Philips outlook, TV sale

Friday 27th of January 2012 12:07:03 PM

When Philips Electronics reports earnings on Monday, investors will be bracing themselves for developments on restructuring, costs cuts and whether the TV business will be sold in the first quarter.

The world's biggest lighting maker, warned investors earlier in January to expect a fourth-quarter hit at its lighting division and healthcare unit due to weak European consumer markets and inventories it was unable to shift.

Europe's largest consumer electronics producer and a top-three maker of hospital equipment, has been hammered by rising raw material costs, sagging consumer confidence, sluggish construction markets and government budget cuts in the healthcare sector.

Given the most recent profit warning, the market isn't expecting any surprises when Philips reports fourth-quarter numbers on Monday.

Investors will instead be looking for Chief Executive Officer Frans van Houten's insight into market conditions in Europe and North America and when to expect results from recently undertaken restructurings and cost cuts.

They also want assurances from him that the sale of the TV business, which still needs to be approved by Hong Kong-based TPV shareholders and regulators, won't be scuppered. TPV is holding an exceptional... read more