Dutch Philips Electronics NV
The company's first-quarter earnings before interest, taxes and amortization (EBITA) swung to a 74 million euro ($97.7 million) loss compared with an average analyst expectation of a 35 million profit in a Reuters poll of 20 analysts.
Individual analyst estimates ranged from a 33 million euros loss to a 155 million profit.
Last year, the company reported an EBITA profit of 265 million euros.
Reductions of our fixed cost base has progressed well in the first quarter and is now expected to exceed 500 million euros on an annualized basis by the end of this year, with a further acceleration of restructuring in the second quarter, especially at Lighting, Philips' Chief Executive Gerard Kleisterlee said in a statement.
Philips was previously targeting about 400 million euros in annual savings.
But Chief Financial Officer Pierre-Jean Sivignon told reporters there are no plans to announce additional job cuts on top of the previously announced 6,000 for 2009. He declined to say whether he excluded extra job cuts.
DEMAND WEAKER THAN EXPECTED
EBITA, excluding 77 million euros in charges, also missed average analyst expectations of an 86 million euro profit in the poll, with estimates of 14 analysts ranging from an 11 million euro profit to a 156 million euro profit.
The world's biggest lighting maker, a hospital equipment maker and Europe's biggest consumer electronics producer, said demand for its products was weaker during the first quarter than anticipated.
We expect demand in the second quarter to be broadly in line with first three months of 2009, the company said in a statement, adding it expected its healthcare market to remain weak, particularly in the United States.
First quarter revenue was down at 5.1 billion euros from 6 billion euros in the same period last year.
Philips told investors last month that its markets all showed a further weakening in the first quarter of 2009 from the previous quarter and that economic stimulus packages had not yet had a noticeable positive effect.
Philips shares were down 1.8 percent at 12.01 euros in early trade, underperforming a 0.2 percent lower DJ Stoxx 50 index <.STOXX50>.
Philips shares are down 19 percent so far this year, compared with a 14 percent decline in the DJ Stoxx 50 index.
(Editing by Sharon Lindores)