Philips is to sell off its home entertainment business, including hi-fis and DVD players, to Japan’s Funai Electric.
Funai will pay 150 million euros ($200 million) and a regular brand licensing fee to take on the product lines.
Dutch electronics giant Philips wants to focus on its healthcare, light bulbs and home appliances businesses as part of its “Accelerate!” restructuring plan.
Philips also reported a 355 million-euro loss for the last three months of 2012.
The loss was in line with expectations and was largely due to a 509 million-euro fine imposed on the company last year by the European Commission for participating in a cartel to fix prices in the television business.
Philips is to sell off its home entertainment business, including hi-fis and DVD players, to Japan’s Funai Electric
Philips announced last year that it was transferring its loss-making television unit to a new joint venture arrangement with Hong Kong’s TPV.
Its latest divestments will not happen immediately – its audio business will pass to Funai in the latter half of this year, while the transfer of its video business will not take place until 2017.
Philips’ underlying profitability in the last quarter – net of the fine and various restructuring costs – improved to 875 million euros, beating the expectations of most market analysts.
However, chief executive Frans van Houten said he expected sales to remain subdued in the first half of this year, because of the “challenging market” in the US and Europe, which account for well over half of Philips’ revenues.
Prize-winning Philips LED light bulb that lasts for 20 years is going on sale in the US on Sunday – also known as Earth Day.
Made by Dutch electronics giant Philips, the bulb swaps filaments for light-emitting diodes to provide illumination.
Using LEDs endows the light with a long life and a hefty price tag. The first versions are set to cost $60.
Philips has arranged discounts with shops that will sell the bulb meaning some could buy it for only $20.
The bulb triumphed in the Bright Tomorrow competition run by the US Department of Energy (DoE) that aimed to find an energy efficient alternative to the 60-watt incandescent light bulb.
Prize-winning Philips LED light bulb that lasts for 20 years is going on sale in the US on Sunday
The DoE challenged firms to develop a design that gave out a warm light similar to that from an incandescent bulbs but was much more energy efficient.
Philips was the only entrant for the competition and its design underwent 18 months of testing before being declared a winner.
A cheaper and less efficient version of the LED bulb is already sold by Philips in the US and Europe.
LED bulbs face competition from compact fluorescent lights which are almost as energy efficient and cost a lot less.
Sales of more energy efficient bulbs are being aided by official moves to end production of higher wattage incandescent bulbs.
Production of 100 watt bulbs has ceased in the US and Europe. Production of 60 watt bulbs has been stopped in Europe and is being phased out in the US. From 2014, incandescent bulbs of 40 watts or above will be banned in the US.