Philips Electronics (NYSE:PHG) warned early this morning that it is seeing much lower profits at two of its key divisions, lighting and consumer lifestyle, than it had originally expected.Europe’s biggest maker of consumer electronics and the world's largest lighting company said it would cut costs soon as a result. The company said it expects a decline in the low single digits in the second quarter at its consumer lifestyle division, which sells products such as toasters and shavers.Philips also said the impact of selling its television operations, which was announced in April, would also hurt earnings. For its lighting division, the company said it expected low single-digit comparable sales growth in Q2 due to weaker than expected market conditions, especially in Western Europe.Philips Electronic has a potential upside of 26.7% based on a current price of $26.05 and an average consensus analyst price target of $33.