This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Koninklijke Philips Electronics NV Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: PHG

As usual, our press release and the accompanying information slide deck were published at 7 a.m. CET this morning. More documents are now available for download from our Investor Relations website. We will also make available a full transcript of this conference call on the Investor Relations website by tomorrow morning at the latest.

With that, let me hand over the call to Frans to start proceedings for the day.

François Adrianus van Houten

Thanks, Abhijit. Welcome, and thank you all for joining us today for our second quarter 2012 earnings conference call. The improved results in the second quarter are encouraging and important proof that our multiyear change and performance improvement program, Accelerate!, continues to positively impact our business. I am pleased with the response of our people and organization to this major and fundamental transformation of our company.

In a relatively short period of time, we have started a large number of initiatives to redirect resources to those businesses and geographies that have strong growth and profit potential, and we have taken out cost in other areas. We have begun to rebuild our value chain to make it leaner, faster and more effective to speed up time to market, to use less working capital, and above all, to improve customer service.

We are redefining our company culture to make it agile and entrepreneurial, where people take ownership, are eager to win and where they team up across geographies and businesses to excel. We have made significant management changes in the top 200 positions in the company with new leaders from both inside and outside the company, which is positively impacting cultural change.

We continue to attack our cost structure and are ahead of plan with our EUR 800 million cost savings program that we have targeted the overhead structure of the company in areas like IT, finance, HR, real estate and by leaning out management layers and organization structures. The design of this program is different from other programs since it focuses on overhead layers and fundamentally changing our ways of working, which means that when these costs are removed, they will not come back, despite top line growth. We have removed EUR 176 million of cost cumulatively until the end of the second quarter. We have also invested about EUR 34 million in various initiatives that enabled these fundamental cost reductions in the second quarter of 2012.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs