Eurozone debt woes weigh on industrials Fears increased that the eurozone's debt problems are hurting industry after Philips warned that the deteriorating economy would hit profits while rival conglomerate Siemens said its targets had become harder to achieve. Industrial companies exposed to consumers and governments are facing growing headwinds as job cuts and austerity measures squeeze budgets. IN European Companies Philips said lacklustre demand had affected healthcare equipment sales while its lighting business had been hit by an inventory overhang and renewed margin pressure. Philips competes with Siemens in lighting and healthcare. The Dutch electronics manufacturer said fourth-quarter earnings before interest, taxes and amortisation (ebita) would therefore be roughly €500m compared to €913m ebita a year earlier. Frans van Houten, chief executive, said he was "disappointed with the results" but promised to continue the company's cost-cutting measures Meanwhile, Joe Kaeser, chief financial officer of Siemens, the German industrial bellwether, cautioned on Tuesday that the company's guidance for this year was "very ambitious." "The headwinds have become stronger," he told Wall Street Journal Deutschland, adding that it would require "hard work" to achieve Siemens" forecasts. Siemens, which manufactures everything from gas turbines to trains and medical diagnostic equipment, said two months ago that it aimed to achieve a profit of €6bn from continuing operations this fiscal year, the same as fiscal 2011 when adjusted for one-time effects. Although Mr Kaeser is known for his cautious guidance, Ben Uglow at Morgan Stanley said Siemens would struggle to meet its annual profit goal. Siemens was among the first industrial companies to warn last summer that customers were growing more cautious in their orders, in particular for goods with short-lead times such as light bulbs. "Companies that don't know whether they will still get a loan tomorrow will not invest," Mr Kaeser said, reiterating that he expected the economy to pick up in the second half of the year due to demand from emerging markets and the US. Recent economic data point to continuing weakness in the European industrial economy but not yet a dramatic deterioration. Seasonally-adjusted German industrial production declined by 0.6 per cent in November from the previous month, the German economics ministry said on Monday. "It's more a slow slide to misery for Europe than a fall off a cliff," Andreas Willi at JP Morgan told clients. Philips" shares fell 4.3 per cent to close at €14.91, while Siemens closed at €75.75.