Jan Hommen, vice chairman and CFO of EUR 29 billion Royal
Philips Electronics (AEX: PHI, NYSE: PHG) of the Netherlands,
Europe''s largest electronics company recently addressed
the Citigroup 2004 Investors'' Conference of global corporate
issuers in Cannes, France.
used this forum to review business targets achieved in
2003, while discussing Philips'' objectives for 2004.He
traced how Philips exceeded its costs savings target of
EUR 1 billion, and continued to focus its portfolio of
core businesses and brought all of its core business activities
back into the black in 2003.
on the past year''s performance,. Hommen said: "We
were able to achieve these goals in 2003, thanks to a
clear management agenda backed by strict financial discipline
- and it''s an approach we''ll continue to pursue as we
move forward with our management agenda for 2004 and with
our business targets for the coming years."
discussed the company''s future targets, which include
achieving consistent returns in excess of Philips'' cost
of capital and a return on sales of 7 to 10 percent in
two to three years time.
management agenda for 2004 announced at the company''s
annual press conference in February will support meeting
these targets. Included in the management agenda for 2004
is the target of achieving
14 per cent EBITA in medical systems and moving toward
a stable 4 to 4.5 percent income from operations in the
consumer electronics business by the end of 2005.