Large Dutch companies have begun to feel the impact of the financial crisis, with a number of them announcing falling profits and production cuts in the past few days.
On Thursday alone, four major Dutch companies announced that they were suffering from the bad economic conditions, Dutch daily Financiele Dagblad reported Friday.
Post and express delivery company TNT issued a profit warning and said it would be slashing costs in its air freight division. Wholesaler and supermarket concern Sligro reported that its profits would be lower this year than last year.
Steel company Corus, part of India's Tata Steel, said it will cut steel production by 20 percent in the next three years, because demand is being "negatively affected by the consequences of the worldwide financial crisis."
Truck maker DAF Trucks expressed the same intention. DAF Trucks, with its sales falling far short of expectations, plans to cut production, scrap temporary jobs and reduce working hours.
In the last few days, big Dutch companies including chemicals giant AkzoNobel, electronics company Philips, chip-equipment maker ASML and printer and copier concern Oce all said they have been badly affected by the economic downturn and the consequences of the financial crisis.
Sligro's share price has dropped as investors are worried about its profitability at a time of sluggish consumer spending.
The share price of companies like TomTom, the producer of navigation equipment, and building company Heijmans has also been under intense pressure. Heijmans announced a "major streamlining operation" late last month.
The Amsterdam Stock Exchange's AEX index lost 5.6 percent and closed at 248.02 points Thursday, its lowest level this year.
Source: Xinhua
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