1206
Philips Plans to Split Business
Economy, Business And Markets

Philips Plans to Split Business

Dutch electronics giant Philips has said it is planning to split the company in two, separating its lighting business from its healthcare division.
Both companies will continue to be based in the Netherlands and use the Philips name, it said in a statement.
Philips has been streamlining its business by selling off underperforming parts of the business in recent years, BBC reported.
Chief executive Frans van Houten said the move was meant to prepare the company for "the next century".
"I do appreciate the magnitude of the decision we are taking, but the time is right to take the next strategic step for Philips, as we continue on our transformation," he said.
"Both companies will be able to make the appropriate investments to boost growth and drive profitability, ultimately generating significantly more value for our customers, employees and shareholders".
Philips, which began as a lighting company back in 1891, said the separation would make it easier for the lighting business to enter new markets.
It also said it would consider "various options for alternative ownership structures'' for the lighting arm, meaning it could potentially be sold or listed separately on the stock market.
Mr van Houten said separating the two divisions would cost it 50m euros (£39m) a year until 2016, but by 2016 he expected the split to save it about 300m euros.
The firm also warned that legal costs as well as "softness in multiple markets" meant its operating profit for the second half of the year would be lower than the same period last year.

Short URL : http://goo.gl/soh0Oq

You can also read ...

US Sanctions on Iran Affect Trade With UAE
The latest US sanctions against Iran are forcing many Iranian...
New Government Policies Reduce Forex Demand
The implementation of new foreign exchange policies by the...
Failure to Safeguard Iran Deal Will Show EU Still a Paper Tiger
Just a few weeks ago, it seemed that the Iran nuclear deal...
Indian Tea Exporters Seeking Special Exchange Rate From Iran
The Indian tea industry has sought a special exchange rate...
Iraq to Respect Dollar Ban But Not All US Sanctions on Iran
Iraqi Prime Minister Haider al-Abadi stepped back from his...
Gold Coin Gains
The benchmark Bahar Azadi gold coin gained on Tuesday, as both...
Nvidia Rolls Out New Chip Technology for Filmmakers
Nvidia Corp on Monday released a new generation of chips aimed...
Google Tracks Your Movements, Like It or Not
Google wants to know where you go so badly that it records...

Trending

Googleplus