Philips first-quarter net income down

April 18, 2011

Dutch electronics giant Philips said Monday that first-quarter net income had fallen 31.3 percent 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 percent/70 percent 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 would hold a 30 percent 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.

In January the electronics giant reported a more than three-fold rise in net overall income for 2010 due to increased emerging market sales.

for the year was 1.45 billion euros ($1.96 billion), up from 410 million euros in 2009.

However Philips warned then that consumer sentiment in mature markets remains subdued, pointing in particular to the television market.

Explore further: SAMSUNG Electronics Regains No. 1 Spot in LCD Market

Related Stories

SAMSUNG Electronics Regains No. 1 Spot in LCD Market

December 20, 2004

Samsung Electronics regained the No. 1 position in the global liquid crystal display (LCD) market last month from LG.Philips LCD, according to the Texas-based display market research firm, DisplaySearch. The electronics giant’s ...

Philips posts surprise profit as cost cuts help

October 12, 2009

Dutch electronics giant Philips reported on Monday a surprise profit for the third quarter as a series of cost cutting measures to cope with the global slump helped the bottomline.

Philips warns over television sector losses

March 28, 2011

Dutch electronics giant Philips warned Monday that it expects losses of between 100-120 million euros ($140-169 million) from its television business as pricing pressures mount.

Recommended for you

Netherlands bank customers can get vocal on payments

August 1, 2015

Are some people fed up with remembering and using passwords and PINs to make it though the day? Those who have had enough would prefer to do without them. For mobile tasks that involve banking, though, it is obvious that ...

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

Microsoft describes hard-to-mimic authentication gesture

August 1, 2015

Photos. Messages. Bank account codes. And so much more—sit on a person's mobile device, and the question is, how to secure them without having to depend on lengthy password codes of letters and numbers. Vendors promoting ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.