* Zumtobel to cut 600 jobs, targets 8-10 pct EBIT margin
* 15-20 mln restructuring costs in Q4, and again in 2014/15
* Shares down 0.4 pct
(Adds details on cost-cutting measures, competitors)
VIENNA, April 2 Austrian lighting group Zumtobel
said it plans to axe 8 percent of its workforce to
double its operating profit margin by 2016/17, as it struggles
against nimbler Asian rivals.
Zumtobel, which brought in ex-Infineon manager
Ulrich Schumacher as chief executive after its two top
executives quit in August, said it would cut 600 jobs over the
next few quarters by merging some plants and sales operations.
The company, which is racing to switch to LED lighting from
traditional lightbulbs, said its margin for adjusted earnings
before interest and tax (EBIT) should improve from around 4
percent to 5-6 percent in 2014/15 and 8-10 percent by 2016/17.
The cost-cutting measures will entail restructuring costs of
15 to 20 million euros ($21 to $26 million) in the fourth
quarter ending this month and similar restructuring costs in
2014/15, it said on Wednesday ahead of a capital markets update.
Zumtobel, like its European rivals Osram and
Philips, is battling competition from Asian providers
including Samsung Electronics and Toyoda Gosei
who are unencumbered by legacy lighting operations.
Schumacher, known as a tough restructuring manager at German
chipmaker Infineon, said in November and again in December that
large-scale job cuts were not part of his plan.
Zumtobel shares slipped 0.4 percent to 18.80 euros by 0712
GMT, following a 5 percent rise on Tuesday in antipication of
the mid-term targets announcement.
(Reporting by Georgina Prodhan; Editing by Greg Mahlich and