Philips Issues Profit Warning For Second Quarter; Shares Drop In Pre-Market Trading

Koninklijke Philips Electronics PHG warned of sharply lower profits on Wednesday. For the lighting unit, Philips projects Q2 earnings before interest, taxes and amortization of about 85 million euros ($122 million), down from €193 million in the first quarter and €210 million in the second quarter of 2010. For the consumer lifestyle business, Philips projects second-quarter EBITA of about €50 million, down from €168 million, in the year-earlier period. PHG shares dropped 13.09% to $22.64 in pre-market trading.