Amsterdam (The Netherlands) – Europe’s largest maker of televisions announced Q4’2008 results today. After posting a EUR 1.5 billion loss, Philips will cut 6,000 jobs and stop buying back outstanding shares to reduce expenditures.
Philips reported EUR 7.6 billion in revenue, down from EUR 8.4 billion in Q4’2007. For the year, 2008 represented total revenues of EUR 26.4 billion, compared to EUR 26.8 billion last year. This is the first quarterly loss posted since 2003. Philips eliminated 3,000 jobs last quarter, bringing the total to 9,000 jobs eliminated by this quarter’s end.
Despite the negative implications of this news, and of a worsening 2009 outlook, Philips’ stock price went up its largest single-day increase since October 29, 2008, gaining EUR 1.26 at the time of Bloomberg’s writing below. At the time of TG Daily’s writing, it was still up EUR 1.15 at EUR 13.70 (a gain of 8.9% on the day).