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CORRECTED-UPDATE 2-Philips to find 60 percent more savings
(Corrects sixth paragraph to show the company's target is a 10-12 percent EBITA margin, not 10-12 percent annual EBITA growth)
* Cost cutting target raised to 800 mln euros from 500 mln
* Says confident will make 2013 financial targets
* TV JV final negotiations on track
* Shares up 1.5 pct (Adds details, company, analyst comments)
By Roberta B. Cowan
AMSTERDAM, Sept 13 (Reuters) - Dutch consumer electronics group Philips announced more cost cutting on Tuesday, to counter sagging consumer demand and weak global markets.
Philips , which is the world's largest lighting maker, one of the three biggest makers of hospital equipment and Europe's biggest consumer electronics producer, has been hit by rising raw material costs, government budget cuts in the healthcare sector and weak consumer and construction markets.
It raised its cost-cutting target to 800 million euros from the 500 million euros announced in July, and said it was confident of meeting its 2013 financial targets despite the global economic uncertainty.
Philips' share price surged as much as 7 percent in early trade, and was up 2.78 percent at 0750 GMT.
"As a result of our efforts and despite economic challenges, we are confident that we can deliver on our 2013 financial targets," said Frans Van Houten, chief executive, in a statement ahead of a 'capital markets day' of presentations to investors in London.
Some analysts had feared Philips would give yet another profit warning on Tuesday because of the deteriorating economic outlook in the past few months, but Philips reiterated its 2013 targets of 4-6 percent sales growth, and an earnings before interest, tax, and amortisation (EBITA) margin of 10-12 percent.
Philips said the cuts would be made mainly in IT, human resources, real estate and management.
Despite a rapidly deteriorating global TV market, Philips said plans to hive off its loss-making TV business to a 30/70 joint venture with Hong-Kong based monitor maker TPV , was on track and set to close by the end of the year.
Philips is heavily exposed to mature European and U.S. markets and is increasingly trying to expand in the fast-growing Asian and emerging economies.
It reported an unexpected 1.3 billion-euro second-quarter net loss on July 18 on writedowns at both its lighting and healthcare units due to weak consumer demand both in Europe and North America. It also lowered profit margin targets for its three core businesses for 2013 and said it would cut 500 million euros in costs by 2014.
Philips has struggled to compete with lower-cost Asian makers of consumer electronics, while tepid consumer confidence and weak economic growth in Europe and the U.S. have hit demand for products ranging from televisions and audiovisual equipment to electric toothbrushes, as well as its street and home lighting systems.
Philips competes with Samsung and LG Electronics among others in consumer electronics, and with General Electric and Siemens (SIEGn.DE) in the hospital and lighting markets. (Reporting by Roberta B. Cowan; Editing by Sara Webb and Greg Mahlich)
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