* Unlikely to hit target of doubling EBITA/share by 2010
* 1.1 bln euro charges mainly on LG Display, NXP stakes
* Shares down 2.2 percent
(Rewrites throughout, updates shares)
By Harro ten Wolde
AMSTERDAM, Dec 4 (Reuters) - Dutch Philips became the latest electronics maker to warn on its outlook and restructure to cope with a worsening economic environment, hitting shares as much as 7 percent on Thursday.
The world's biggest lighting maker and Europe's biggest consumer electronics producer said tougher markets, including construction and automotive, will make it hard to meet mid-term profit targets.
"The downturn we see now is without recent comparison and is developing much faster and deeper than expected," Philips Chief Executive Officer Gerard Kleisterlee told an analyst conference.
The comments follows similar warnings from rivals Sony, Sharp Corp and Panasonic.
But while Philips' consumer business generates nearly half of group revenue, it only contributes around 28 percent of operating earnings. The healthcare and lighting businesses generate the remainder.
Shedding cyclical businesses such as semiconductor manufacturing -- the business now named NXP and still 20 percent owned by Philips -- and focusing on healthcare and lighting was supposed to make Philips a more predictable, stable company. Philips said it will not meet its target of average annual sales growth of 6 percent until 2010 and a margin on earnings before interest, tax and amortisation (EBITA) of 10 to 11 percent.
BLOW TO INVESTORS
It will also take non-cash writedowns mainly on its stakes in LG Display and NXP, majority owned by a private equity consortium including KKR, of about 1.1 billion euros.
It will take extra measures to reduce costs and protect margins, resulting in additional charges of around 110 million euros ($139 million) and bringing total restructuring charges for the fourth quarter to 340 million euros.
Philips shares, which have lost 55 percent so far this year, were down 2.2 percent at 12.92 euros at 1538 GMT, having been as low as 12.23 euros, underperforming the DJ Stoxx 50 index, which was down 0.4 percent.
"It is not unexpected in this market. Still the news is a pretty great blow to investors," said Theodoor Gilissen analyst Tom Muller.
Philips already said in October that its consumer business was feeling the impact of slowing economies, particularly in North America and Europe, where it generates the bulk of revenue from products ranging from MP3 players and digital photo frames to water kettles, toasters and shavers.
Fourth-quarter revenue for the Consumer Lifestyle unit is expected to drop 35 percent, and Rabo Securities analyst Frits de Vries said this could push the unit into the red. (Additional reporting by Reed Stevenson; editing by Simon Jessop and Rupert Winchester)