Philips raises target for cost cutting

consumer electronics group Philips yesterday announced more cost cutting to counter sagging consumer demand and weak global markets.

The firm, which is Europe’s biggest consumer electronics producer, has been hit by rising raw material costs, government budget cuts in the healthcare sector and weak consumer and construction markets.

It raised its cost-cutting target to €800 million (£700m) from the €500m announced in July but said it was confident of meeting its 2013 financial targets despite the global economic uncertainty.