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‘Crisis of Confidence’ Forces Philips’ President to Resign

From Associated Press

N. V. Philips today announced the resignation of its president in a “crisis of confidence” after the multinational electronics company barely broke even in the first quarter.

Cor van der Klugt, 65, will retire on July 1 and be succeeded by his deputy, Jan Timmer, former Philips President Wisse Dekker said at a news conference today.

Dekker’s announcement followed days of speculation over Van der Klugt’s future, set off by Philips’ May 3 announcement that it had earned $3.1 million in manufacturing profits during the first three months of this year.

Dekker said the results had caused a “crisis of confidence” in the financial world because Van der Klugt had claimed that the company was performing far better.

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“The problem is that expectations were raised . . . and that there is such a huge difference between the expectations and the real results,” Dekker said.

“That is about the worst thing that can happen to a company,” he added.


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