Philips to transfer loss making television division
Philips is to move its tv business to a 30/70 joint venture, with the option to sell out. According to new chief executive Frans van Houten, pictured, the decision has been made in a bid to boost flagging profit.
Europe's biggest consumer electronics manufacturer will embark on the joint venture with Hong Kong based monitor maker, TPV, where all 3600 Philips employees will be transferred.
The unit, which makes up less than 10% of group sales has made losses of almost €1billion since the beginning of 2007. Van Houten told Reuters that the company was not 'firing on all cylinders' and that there was 'much unlocked potential' in Philips. The venture, "will enable a return to profitability for the television business, and an increased portfolio focus for Philips in health and well being," he said.
Philips did not reveal a value for the deal, but said it would receive a deferred payment from TPV.
