By ROBERTA COWAN, Profit falls by 85% on higher restructuring and raw material costs as the electronics producer embarks on an 800 million euro cost-cutting scheme Philips Electronics said on Monday it would cut 4500 jobs as it reported an 85% slump in third-quarter net profit on higher restructuring and raw material costs. Europe’s biggest consumer electronics producer, which is also the world’s biggest lighting manufacturer and among the top three hospital equipment makers, said it was considering alternative options for its TV unit. The company added that negotiations with Hong-Kong based TVP to sell off most of its TV business were intense and constructive but taking longer than expected. "For the eventuality that a final agreement cannot be reached, Philips will consider its alternative options," said Frans van Houten, chief executive, in a statement on Monday. Philips will aim to cut 4500 jobs as part of an ?800m cost-cutting scheme to boost profits and meet its financial targets. On Monday, it reported a third-quarter net profit of ?76m, down from ?524m a year ago on sales of ?5,94bn, down from ?5,46bn. Analysts in a Reuters-commissioned poll had expected a third-quarter net profit of ?53,8m on sales of ?5,341bn. Source: BusinessDay, Image: flickr.com
