Sense and simplicity is the marketing motto of Europe’s biggest consumer electronics maker Philips.
Just a few weeks into his job as CEO of the company, Frans van Houten has simplified the company’s product offering, hiving off the loss making TV unit, which no longer made financial sense.
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Philips is hiving off its once leading television business, the first step by new chief executive Frans van Houten to boost flagging profit.
He’s moving the TV business to a 30/70 joint venture with Hong-Kong based monitor maker TPV and has the option to sell out.
“As the incoming CEO my first priority was to deal with the television situation. My second priority is to improve the performance run rate of Philips and over the last weeks I have installed a granular business management system.”
The restructuring expert say he’s assessing the profitability of Philips’s 400 or so business areas, hinting that further sales could be on the cards.
Philips shares opened lower on the news, but rebounded soon after ending the day down around 9-tenths of a percent.
Van Houten says he will present a new strategic plan in the second half of the year.
Bottom line: Europe’s biggest consumer electronics maker Philips is hiving off its once leading television business, the first step by new chief executive Frans van Houten to boost flagging profit.