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Microsoft Corp. today plans to announce the replacement of the head of its mobile-phone group as part of a broader executive reshuffling, people familiar with the matter said.

Under the plan, which includes promotions for more than 10 executives and the departure of others, the Redmond, Wash., software maker will name Andrew Lees, currently a corporate vice president at the company's server and tools group, to lead its mobile-communications business, which makes software for mobile phones, one person familiar with the situation said. He will become a senior vice president.

The existing head of the mobile-communications unit, Pieter Knook, will retire from Microsoft, people familiar with the matter said. Mr. Knook, a senior vice president, joined Microsoft in 1990 and has served in a variety of roles, including president of Microsoft's Asia operations.

The changes come as Microsoft is making a push into the consumer mobile-phone market. The company has mainly focused on providing software for phones that businesspeople use. Its chief rival in that market is Research In Motion Ltd., maker of the BlackBerry device.

That realm has proven to be a niche in comparison with the sales volume of the consumer-phone market. Some of the most innovative phone designs -- such as Apple Inc.'s iPhone -- and new wireless services are being aimed at consumers. Microsoft this week announced a consumer phone with Sony Ericsson, a venture of Sony Corp. of Japan and Sweden's Telefon AB L.M. Ericsson, and also said it acquired Danger Inc., maker of the technology behind T-Mobile's popular Sidekick hand-held gadget.

Mr. Lees is a newcomer to the field. The British-born executive joined Microsoft in 1990 and has spent most of his career in marketing positions in the U.S. and the United Kingdom. His most recent job has been running marketing for the server and tools group, software used by businesses.

The change in the mobile group will coincide with promotions across most of Microsoft's business groups. At least three vice presidents, including Mr. Knook, are expected to either leave Microsoft immediately or later in the year.

The changes, according to the people familiar with the situation, include expanded duties for two corporate vice presidents, Bill Veghte and Satya Nadella. A corporate vice president in charge of Windows marketing, Michael Sievert, is expected to leave the company. Steve Berkowitz, a senior vice president who has managed a chunk of the online business, is expected to remain at Microsoft into the summer.

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Feb. 5 (Bloomberg) -- Royal KPN NV, the largest phone company in the Netherlands, said fourth-quarter earnings rose 6 percent after the acquisition of Getronics NV and on higher margins at its German mobile unit E-Plus.

Profit before interest, tax, depreciation and amortization rose to 1.22 billion euros ($1.8 billion) from 1.15 billion euros a year earlier, The Hague-based KPN said in a statement today. Net income more than tripled on a 1.1 billion-euro income-tax gain. Total sales climbed 20 percent to 3.66 billion euros.

KPN, led by Chief Executive Officer Ad Scheepbouwer, reported its first sales increase in more than a year as acquisitions and new services such as television and Internet calling made up for the loss of fixed-line customers. The company paid 766 million euros for Getronics last year. Operating profit and sales at the Dutch business will return to growth by the end of 2010, the company said.

``It's good that after a few years of flat guidance they finally are trying to show some growth again,'' said Philippe Kiewiet de Jonge, who oversees a telecommunications fund at ABN Amro Asset Management, which manages $323 billion. ``This shows the Dutch business is under control and Germany is still growing. There's more music in KPN than a couple of years ago.''

Net income jumped to 1.58 billion euros from 427 million euros a year earlier. Profit before tax totaled 480 million euros. Analysts predicted KPN would report net income of 391 million euros on sales of 3.6 billion euros, the median of 13 estimates in a Bloomberg News survey by phone and e-mail.

Shares Rise

KPN fell 1 cent, or 0.1 percent, to 12.35 euros in Amsterdam. The stock has fallen 0.7 percent this year, while the 21-member Bloomberg Europe Telecommunication Services Index is down 9.1 percent.

``This strong strategic update confirms our positive stance on KPN,'' Amsterdam-based analysts Frank Claassen and Philip Scholte at Rabo Securities wrote in a note today. The 2010 growth forecast is ``more exciting'' than the results, they said.

KPN said it would cut a further 2,000 jobs through 2010, in addition to the target of 8,000 announced in 2005.

The company will pay a dividend of 54 cents a share, up 8 percent from last year and matching analysts' estimates. KPN said it's increasing the amount of annual free cash flow it will pay in dividends to 40 percent to 50 percent, from 35 percent to 50 percent. Dividends should reach 80 cents a share in 2010, the company said.

`Strong Commitment'

``The market is focusing on the outlook,'' said Joris Franssen, who helps oversee $1 billion at Kempen Capital Management in Amsterdam and doesn't hold KPN. ``The dividend outlook for 2010 is a very strong commitment.''

KPN will also buy back 1 billion euros of stock this year. Last year, the company repurchased 1.5 billion euros of shares.

Earnings before interest, tax, depreciation and amortization at mobile unit E-Plus rose 26 percent to 278 million euros in the fourth quarter, beating the 264 million-euro analyst estimate. Sales at the unit, the third-biggest mobile-phone company in Germany, rose 1.7 percent to 760 million euros.

KPN last week started offering mobile-phone services in Spain using the network of France Telecom SA's Orange unit.

The company would be interested in closing similar deals in other countries, including France, Stan Miller, the head of KPN's international mobile business, said in an analyst meeting broadcast over the Internet. He ruled out buying Bouygues SA's mobile-phone unit.

Dutch Growth

Sales and Ebitda of the Dutch business will start growing again ``organically,'' Scheepbouwer said on a call with journalists today. Ebitda will return to growth after 2008 and sales will reach the ``inflection point'' in 2010 at the latest. Growth will be driven by new services, such as digital television and Web calls, the company has said.

In 2010, KPN forecasts Ebitda of at least 5.5 billion euros compared with 4.9 billion euros in 2007. Sales will rise to more than 15 billion euros from 12.6 billion euros last year.

The company is considering the divestment of some Getronics operations with annual sales of about 800 million euros. Getronics added 23 million euros to fourth-quarter Ebitda.

KPN said today it will complete the sale of Getronics's Australian operations to UXC Limited at the end of this month. In December, KPN sold the Spanish and Portuguese operations. KPN targets Ebitda of 125 million euros on revenue of 1.5 billion euros at Getronics in 2010.

Scheepbouwer, 63, joined the company in 2001 after his predecessor quadrupled debt expanding outside the Netherlands.

After slashing spending and selling assets, Scheepbouwer invested in new services, including calls over the Internet, digital television and computer services for corporate customers. Last year, he agreed to extend his contract until 2011.

``What he's done until now is really good. He saved the company when it was on the verge of collapsing,'' Kiewiet de Jonge said. ``This will be his last show: bringing the company back to growth. His personal commitment is behind this.

news source : http://www.bloomberg.com/