February 2012 - Association of Dutch Businessmen

Bizz News
Air France-KLM to
slash costs
Air France-KLM is to reduce investment
by €1bn and generate €1bn through
freezing wages and recruitment,
the French-Dutch airline said. The
aim of the restructuring is to cut net
debt by €2bn by the end of 2014.
The group sacked its chief executive
Pierre-Henri Gourgeon in October,
bringing back Jean-Cyril Spinetta who
pushed through the merger in 2004.
‘We have to adjust our capacity for
the next few years, whether it’s cargo
or passengers,’ Spinetta was quoted
as saying by the Financial Times.
‘The offer of transport has outpaced
demand in recent years, and that’s
weighing on all airlines.’ Wages at
KLM will be ‘moderated’ not frozen,
indicating the Dutch arm is performing
better than the French.
Minister wants to see
more temporary job
contracts
Social affairs minister Henk Kamp is
working on plans which would allow
employers to make greater use of
temporary employment contracts.
At the moment, workers who have
had three temporary contracts must,
by law, be given a permanent one.
But Kamp is keen to give employers
the option of a fourth longer-term
temporary contract. In a briefing to
MPs, Kamp says the use of longer
temporary contracts fits in the trend
of flexible working - where people
no longer have the same job for life.
In addition, he says it will encourage
employers to invest more in training
their staff. According to documents
sent to parliament, Kamp is looking
at introducing temporary contracts of
between seven and 10 years. Unions
say the plan undermines the position
of workers.
House prices fell by 4% in 2011
House prices fell by an average of 4% last year, according to the Dutch
estate agents organisation NVM. In total, 118,000 properties changed
hands, a drop of 7% on 2010. The drop in sales in the fourth quarter
was 13%, compared with the same period in 2010, the NVM said. The
organisation expects prices to drop by a further 5% this year.
Tax cut
The government’s decision to cut the tax paid on property transactions
from 6% to 2% of the value has not boosted the housing market as hoped,
property experts said. Estate agents had hoped the tax cut would boost
the number of properties changing hands by 10% but that is far from
being reached. The cut has shaved thousands of euros off the cost of
buying a house but has failed to convince people to take the plunge. Banks
have also brought in tougher rules on mortgages, reducing the amount of
money people can borrow. In addition, only half the loan home owners
borrow may be in the form of an interest-only repayment mortgage.
Estate agents
Meanwhile, the NVM says that the housing market crisis has not led to
fewer people taking up the profession. Recently, 14 new estate agents
were sworn in, in line with developments in recent months, chairman
Ger Hukker said. Nevertheless, many established companies are on the
verge of bankruptcy. Many carry out 20 or fewer transactions a year which
generates an income of between €1,500 and €2,000 a month, Hukker told
the press. In 2006, estate agents sold some 210,000 homes but last year
the total almost halved to 121,000. The NVM has some 3,500 members,
rival organisation VBO 1,011 and the smaller VastgoedPRO 797.
Philips issues disappointing trading
update and profit warning
Dutch electronics giant Philips issued a trading update warning of
disappointing growth in the fourth quarter of 2011. Group sales for the
quarter are expected to show mid single-digit comparable growth over the
fourth quarter of 2010. Operating profit will reach €500m, compared with
€913m in the 2010 fourth quarter, the company said. ‘Our expected fourth
quarter financial results have been affected by the weakness in Europe,
which has impacted our healthcare business, as well as pricing in our
consumer lighting business,’ said CEO Frans van Houten in a statement.
The company will publish definitive 2011 results by end January.
ING to take longer to repay state aid, no dividends until then
ING has made paying back the remaining €3bn it owes the state a priority and this will happen by the end of 2013, the
banking and insurance group said. ‘However given the ongoing crisis in the eurozone and increasing regulatory capital
requirements, we need to take a cautious approach and pay special attention to liquidity, funding and capital,’ CEO Jan
Hommen said in a statement to update investors and analysts on the bank’s strategy. Last year, ING said it planned to
repay the remaining money in aid it received from the government by May 2012. But in November Hommen hinted
the final settlement could be postponed because of market uncertainty and new capital requirements. In addition,
no dividends will be paid until the state has been paid off, ING said. The bank also said it had reduced its exposure to
southern European debt to around €2bn, bringing the total reduction in 2011 to around €4bn.
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