Philips dumps flat screen and chip business

By

Concentrating on medical and lighting for the future.

Philips dumps flat screen and chip business
Philips is to sell stakes in its flat screen television and semiconductor businesses to concentrate on more profitable lines.

Chief financial officer Pierre-Jean Sivignon said at the announcement of the firm's financial results, which showed profits up 22 percent for the past quarter, that Philips is cutting its stake in its LG Philips flat screen joint venture with LG to below 20 percent.

The firm is also aiming to sell off its semiconductor business, with its 8.1 percent share in Taiwan Semiconductor Manufacturing, by 2010. In addition Philips is looking a buyer for its 19.9 percent stake in NXP, Europe's third-largest chipmaker.

"We will be opportunistic. We have 19.9 per cent [of NXP], we have no lock-up clause, we're not in the driving seat on this particular one, but if there is an opportunity for the right price we might be interested in selling it," Sivignon told CNBC.

Instead the company will concentrate on its remaining consumer products businesses, the lighting market and expanding its medical equipment business.

It will also be amassing a war chest to go on an acquisition spree in the medical and lighting markets.

The firm has also spent over €500m (A$788m) filling up its pension scheme and will be buying back €400m (A$630m)of its own shares.
Got a news tip for our journalists? Share it with us anonymously here.
Copyright ©v3.co.uk
Tags:

Most Read Articles

Porn industry standardises on HD-DVD

Porn industry standardises on HD-DVD

La Trobe ACAMI supercomputer comes online

La Trobe ACAMI supercomputer comes online

TfNSW extends deal for mobile phone detection cameras

TfNSW extends deal for mobile phone detection cameras

Australian teen leaks pictures of new iPhone parts

Australian teen leaks pictures of new iPhone parts

Log In

  |  Forgot your password?