Industrials

Philips warns of European consumer slowdown

15 Jun 2005

But the Dutch conglomerate has retained its 56% sales growth target for this year and higher operating margins in 2006. The group looks like it is setting itself up for further disappointments.

Siemens makes clean exit from mobiles

7 Jun 2005

The German conglomerate will take a much lower than expected E350m charge for Taiwan s BenQ to take the lossmaking unit off its hands. That s better than running it at a loss or closing it down. And it leaves BenQ the gruelling task of dealing with Siemens German workforce.

Alcatel folds on handsets

17 May 2005

The French telecom equipment firm has sold its stake in its mobile phone venture with China s TCL just nine months after formation. Selling at an 85% loss may sting, but staying in would have resulted in far higher losses.

Kleinfeld effect wears off at Siemens

27 Apr 2005

The German conglomerate s shares rose ahead of Kleinfeld taking over as boss in January. Since then they have fallen to sixmonth lows. The Q2 results, particularly mobile, are a further disappointment. Kleinfeld has to move on from strategy to execution.

Nokia transfers pain to competitors

21 Apr 2005

The Finnish phone maker s price cuts have stopped its fall in market share. This is causing problems to lowend competitors like Siemens. And it has had some success in selling expensive phones hurting highend producer Sony Ericsson.

Philips can’t avoid tech downdraft

18 Apr 2005

The Dutch conglomerate is at the defensive end of the spectrum, having disposed of many of its interests in highlycyclical tech businesses. The fact that investors are marking it down so hard is a sign of their disillusionment with the whole tech sector.

Too early to call upturn in chip industry

5 Apr 2005

Global chip sales rose in February by 16% compared to last year. The industry association says sales forecasts may need to rise. But this would be one of the shortest downturns ever. History, and a slowing underlying rate of growth of the industry suggest against it.

Alcatel pays for past underinvestment

3 Feb 2005

The French telecom equipment maker s dash for cash over the past few years has placed a straightjacket on the group. Deferred expenditures are now lowering the gross margin. And expected sales growth has disappointed.

Siemens fails to grasp the nettle

27 Jan 2005

The German conglomerate hasn't decided what to do about its troubled mobile phone business. None of the options are very appealing. Fixing the unit means heavy investment. And shutting it down is politically sensitive. Siemens may have to pay to get it off its hands.

Nokia shares would struggle without pay-out

27 Jan 2005

The Finnish phonemaker will return up to 13% of its market capitalisation to shareholders next year. Yet its shares have stagnated. The implication is that shareholders are worried about the underlying business.

Can Kleinfeld transform Siemens?

24 Jan 2005

The real challenge for the German conglomerate s new chief will be to assert control over its managerial bureaucracy. His success will ultimately depend on the backing of his predecessor and future boss Heinrich von Pierer.

Intel fixes inventory problem – for now

12 Jan 2005

High US demand for computers meant Intel could reduce inventory and stick it to competitor AMD at the same time. But US electronics retailers have had a miserable Christmas. Their backlog of inventory will soon move up the chain to Intel.

Rexel deal rests on generosity of lenders

1 Dec 2004

The E3.7bn deal only really stacks up for the private equity buyers because banks are prepared to lend huge sums. Why are the banks willing to do this? Because they expect to offload part of their exposure. They had better be quick about it.

Thomson rally may have further to run

30 Nov 2004

Dangeard, who has returned to revitalise the French media services group, has come up with punchy but credible growth and margins targets. If he can meet them, the shares look cheap.

Philips sells E720m Vivendi stake

25 Nov 2004

The Dutch electronics group continues to sell off noncore assets. Philips is too big for its own good. Keeping capital tied up in other companies doesn t help. It should carry on the process of clearing out the attic.

Siemens expands empire further with VA Tech bid

8 Nov 2004

The German engineering group s E1.4bn offer for the Austrian engineering group looks cheap. But it makes little industrial sense. It increases the group's complexity and labour costs. And Siemens should be simplifying, not increasing its sprawling empire.

Sagem workers risk squandering inheritance

3 Nov 2004

The company is owned by its employees. They deserve a premium for surrendering control. Yet they have been asked to swallow a discount. If the merger with Snecma secured their jobs, they might tolerate this. But a longterm threat still looms over their employment.

Philips running to stay in place

12 Oct 2004

The Dutch conglomerate s management have stated that this year is going to be one of the better years . But the company doesn't have much to show for a decade of restructuring. Operating margins at 4% are no higher than they were 10 years ago.

How exceptional are Thomson’s charges?

11 Feb 2004

The French electronics company has taken exceptional charges against income for four years in a row. Nearly a third of operating income has been eaten up by these write offs and the charges look set to continue.

Philips’ chip division profits already priced in

10 Feb 2004

The Dutch electronics conglomerate's chip division moved into the black after nearly three years of losses. But the market has already priced a semiconductor boom and more into Philips stock.