Philips 2008 Annual Report Download - page 69

Outlook
Our fourth-quarter results confirm the expectation
we expressed early December that the short-term
economic outlook is worsening and that 2009 is likely
to be a very challenging year. Construction and automotive
markets look set to remain contracted and the latest
consumer confidence numbers – also in most emerging
markets – leave little room for optimism. Although
Healthcare has been less directly affected by the
economic downturn, the limited availability of capital
financing in North America is expected to continue
for the foreseeable future.
Anticipating this environment, we proactively
extended our restructuring plans and sharpened
our cash management initiatives last year to further
drive down (fixed) costs and ensure we start this year
with a strong balance sheet position. In line with our
prudent financial management, we will stop the share
repurchase program until further notice. During 2009,
we will continue to closely manage our businesses
relative to both the market and the competition.
We are confident that this stringent approach to cost
and cash management, together with our strong brand
and our balanced portfolio of leading businesses, will
enable us to weather the current economic turmoil
and will result in an even stronger company able to
deliver on its targets once economic conditions recover.
Amsterdam, February 23, 2009
Board of Management
Philips Annual Report 2008 69
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance