Commenting on its 1990 figures, alongside, Philips NV says that despite the vast $2,500m loss for 1990, it believes that it will be able to conclude 1991 with a net profit adding that it can make the forecast despite an uncertain economic climate because the combined effect of improvements in efficiency in all sectors, restructuring in a number of divisions, and the discontinuation of unprofitable activities will result in an improvement in income. Philips attributed the slight decline in sales to adverse exchange rate movements, which reduced sales 7.0% when expressed in guilders, and divestments, which further reduced sales by about 1.0%. Split of business was $14,810m for consumer, up 9%; $7,614m for professional products, up 2%; $4,758m for components, up 6%; $4,096m for lighting, up 1%, and $1,234m for everything else, up 3%. The allocation of the restructuring charges was split $893m for components, $772m in professional products – computers, telecommunications, military electronics, $286m in consumer products, $246m in lighting, with the balance unallocated. European turnover was 61% of the total, up from 57% last tyera; the US was down to 21% from 24%, and 9% was done in Asia, up from 8%. Philips still forecasts that the total reduction of its workforce by the end of 1991 will be in between 45,000 to 55,000 employees out of the 272,000 currently employed.
