Philips Electronics NV has warned it expects to take charges of the equivalent of $1bn in the fourth quarter after economic conditions in Brazil added to the problems facing the company. Provision for bad debts in Brazil is the latest dent in its balance sheet to be added to charges for winding up its Philips Consumer Communications joint venture with Lucent in the US and charges relating to acquisitions. While Philips will report an extraordinary gain of $5.6bn from the sale of its 75% stake in PolyGram to Seagram, the company warns that earnings from normal business operations in 1988 will be lower than for the previous year.
