Philips Q1 profit plunges, missing expectations
FE Team | Published: April 19, 2011 00:00:00 | Updated: February 01, 2018 00:00:00
THE HAGUE, April 18 (AFP): Dutch electronics giant Philips revealed Monday that first-quarter net profit plunged 31.3 per cent and announced a joint venture with Hong Kong-based TPV for its flagging television business.
Net income declined to 138 million euros ($198 million), which was lower than forecast by analysts who spoke earlier to Dow Jones Newswires.
"Finding a solution for our television business was top priority and we strongly believe that the intended 30 per cent70 per cent joint venture with TPV that was announced today will enable a return to profitability for the television business," CEO Frans van Houten said.
The joint venture would be operational by the end of the year, a statement said, adding that Philips would hold a 30-per cent stake.
Television sets produced can bear the Philips brand name for at least five years, and the company will receive royalties.
Van Houten warned of a tough year ahead, saying: "We expect headwinds in 2011 due to the Japan tragedy, impacting our revenue and supply chain."
Philips, a manufacturer of medical equipment, televisions and lighting systems, employs about 119,000 people in more than 60 countries.
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