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Koninklijke Philips Electronics NV announced Monday it would reorganize into three separate units: Consumer Lifestyle, Lighting and Healthcare. The move is expected to result in a more than doubling of EBITA per share by 2010. According to Philips President and CEO Gerard Kleisterlee, "The time is right... to give our stakeholders a clear blueprint of what we want Philips to be in 2010.” The Consumer Lifestyle unit will be comprised of consumer electronics, domestic appliances and personal care; Philips sees no need to necessarily cut jobs as part of its reorganization, which it has dubbed "Vision 2010." Philips announced it was buying American LED company Color Kinetics in June. The company expects its reorganization to save it as much as 200 million euros ($274 million) a year, with sales increasing a minimum of 6% annually. Philips shares were higher by 2.6% in Amsterdam Monday morning.

Sources: Press Release, Bloomberg, Reuters, MarketWatch, Dow Jones Newswires I, II
Commentary: Philips Comments on Weak Flat Panel Sales and Its Consumer Electronics BusinessPhilips to Acquire Color Kinetics: What's An LED Investor To Do?Koninklijke Philips Electronics To Buy Color Kinetics For 14% Premium
Stocks/ETFs to watch: PHG. Competitors: GE, MC, SNE, LPL. ETFs: Shares MSCI Netherlands Index (EWN)
Earnings call transcript: Koninklijke Philips Electronics Q2 2007

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Source: Philips Electronics Hopes To Save Big With Reorganization