Home / News / Philips sees sharp fall in profits
Despite declines of 28 per cent in television division, CEO says there are no plans to pull the plug

Philips sees sharp fall in profits

Philips has suffered a 28 per cent drop in profits after its core television business was hit hard by increasing losses; down €51 million in losses to €95 million.

The firm, which recently pull out of the US television market, said that the credit crunch was increasingly putting pressure on its consumer operations and that it expected a continued softening of ‘mature economies’ such as consumer electronics.

Philips’ chief executive Gerard Kleisterlee told The Times: "Unfortunately our results are clouded, more than we like, by the adverse situation in our TV business, significantly lower incidental license income and some acquisition-related charges."

Kleisterlee, however, stressed that despite deepening losses, the company had no plans ‘"or the time being" to pull the plug on its European television operations, describing it as a "stronger business".

The sharp fall in profits comes after it pulled out of much of its electronics interests last year to focus more on its lighting and healthcare businesses.

Check Also

Target Components appointed Elite System Builder by AMD

Distributor Target Components has been appointed as an Elite System Builder by AMD. This is …