Philips chief looks for extra savingsRoyal Philips Electronics, the world's largest lighting company, is pursuing a cost reduction program  to make sure the business is prepared for the future.

The reduction will be in addition to a $1 billion savings program that was started last year, according to Bloomberg. To achieve the proposed reductions, the company will reconsider infrastructure, IT and real estate spending at its Dutch headquarters.

“We need to make sure the way we work is suitable for the 21st century,” CEO Frans van Houten said in a presentation at an investor day in Boston. “We will continue to look at additional cost-savings opportunities.”

Houten recently set a 4 to 6 percent target for sales growth by 2013, pending gross domestic product increases at 3 to 4 percent in the next few years. The company has a 2013 goal of earnings of 10 to 12 percent, prior to interest, taxes and amortization, Bloomberg reported.

At the end of the first quarter of 2012, the profitability of the company was at 9.8 percent. Houten stated that the company still has a long way to go to accomplish the 2013 goals.

Philips recently announced a healthy profit that was spurred by sales and gains from assets, which sent shares higher in the market, The Wall Street Journal reported.
Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours