This website does readability filtering of other pages. All styles, scripts, forms and ads are stripped. If you want your website excluded or have other feedback, use this form.

Philips to exit hi-fis and DVD players - BBC News

Homepage

Accessibility links

BBC Account Notifications Search
News

BBC News Navigation

Sections Business Business

Philips to exit hi-fis and DVD players

  • 29 January 2013
Image caption Philips is the world's leading manufacturer of lighting

Dutch electronics giant Philips is to sell off its home entertainment business, including hi-fis and DVD players, to Japan's Funai Electric.

Funai will pay 150m euros ($200m; £130m) and a regular brand licensing fee to take on the product lines.

The company wants to focus on its healthcare, light bulbs and home appliances businesses as part of its "Accelerate!" restructuring plan.

Philips also reported a 355m-euro loss for the last three months of 2012.

The loss was in line with expectations and was largely due to a 509m-euro fine imposed on the company last year by the European Commission for participating in a cartel to fix prices in the television business.

Philips announced last year that it was transferring its loss-making television unit to a new joint venture arrangement with Hong Kong's TPV.

Its latest divestments will not happen immediately - its audio business will pass to Funai in the latter half of this year, while the transfer of its video business will not take place until 2017.

The Dutch firm's underlying profitability in the last quarter - net of the fine and various restructuring costs - improved to 875m euros, beating the expectations of most market analysts.

However, chief executive Frans van Houten said he expected sales to remain subdued in the first half of this year, because of the "challenging market" in the US and Europe, which account for well over half of Philips' revenues.

Share this story About sharing

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites

Top Stories

No 10 to push again for Brexit deal vote

The PM wants "a straight up-and-down vote" as the Commons returns after its rare Saturday sitting.

21 October 2019
Meghan: Friends said 'do not marry Prince Harry' 21 October 2019 Cost of living protests in Chile take deadly toll 21 October 2019

Features

Why Spain is digging up a dictator

How it feels to be the only Grindr user in the village

What will happen with Brexit in the next few days?

Three generations under one roof to beat the housing crisis

Video

Black hole scientist bounces back from trolling

Corrie cancer plot shows 'life isn't a fairy tale'

Video

Forgiving the Sri Lanka bombers

How Grenfell fire inspired TV drama The Accident

Video

Playing Scottish bagpipes in Bolton to honour my Hindu guru

Elsewhere on the BBC

Cold/Flu tips

How can we avoid them?

Full article Cold/Flu tips

Daily news briefing direct to your inbox

Sign up for our newsletter

Full article Daily news briefing direct to your inbox Why you can trust BBC News

BBC News Navigation

BBC News Services