Philips Electronics NV plans to speed up restructuring after swinging to a surprise first-quarter loss, as the global recession hit sales, and said it does not see its markets improving in the second quarter. "In the first quarter of 2009 we have seen a significant further deterioration of our markets," Philips' Chief Executive Gerard Kleisterlee said in a statement.
"We expect no material change to this situation during the second quarter," he said of the company, which makes products from light bulbs to complex medical equipment. The company's first-quarter earnings before interest, taxes and amortisation (EBITA) swung to a 74 million euro ($97.7 million) loss, from a 265 million euro profit last year.
Analysts had on average expected a 35 million profit, a Reuters poll of 20 analysts showed, with individual estimates ranging from a 33 million euro loss to a 155 million profit. Philips shares were up 7 percent at 13.08 euros by 0935 GMT, erasing an earlier loss of 2 percent and outperforming a 1.7 percent higher DJ Stoxx 50 index.
"They (the results) are definitely not good enough to suggest that Philips can steer clear from the weak overall economy, but they are not so bad as to suggest that Philips is in big trouble," Petercam analyst Eric de Graaf said.