Electronics group Philips said on Thursday that it no longer expected to meet its target of doubling operating profit per share by 2010 because of poor market conditions.

‘While we remain fully committed to our strategic course, the current deterioration in the external business environment means we can no longer be convinced of the original time frame we put on our medium-term financial targets,’ said CEO Gerard Kleisterlee in a statement.
‘Although we have been able to reshape the Philips portfolio into a stronger and more resilient set of globally leading businesses, the speed and ferocity with which the weakening economy is affecting demand in key markets is now also taking its toll on the financial performance of Philips,’ Kleisterlee said.
‘The downturn we see now is without recent comparison and is developing much faster and deeper than expected. In response, we have to act swiftly and take further measures to minimise the effect on our profitability.’
The statement came ahead of a meeting for analysts on Philips’ consumer lifestyle operations.
Measures to reduce costs and protect margins are expected to lead to additional charges of around €110m.
In addition, Philips is to write off €1.1bn on its interests in South Korean screen maker LG Display and semi-conductor maker NXP in the fourth quarter.
For the full Philips statement, click here