By Chris Nicholls
COPENHAGEN: Philips Electronics has announced the sale of their PC monitor business, hoping to stem the losses from their TV division, of which it forms a part.
The sale of the IT Displays business will be to what Philips says is the world’s largest PC monitor maker, TPV Technology Limited.
According to the agreement, TPV can use the Philips brand on a series of monitors it will source, distribute and market in return for a royalty payment to Philips.
The transaction is expected to be completed during this year, subject to the usual regulatory approvals and fulfilment of agreement closing conditions.
In its statement, Philips said openly that the sale was to help redress the lacklustre performance of its display division.
“The intended agreement with TPV represents a further step by Philips to fundamentally reposition itself in the digital display business and accelerates Philips’ efforts to address the unsatisfactory performance of its television business,” it said.
Philips pointed to the outsourcing of its US television operations in April and other unnamed optimisation strategies as evidence of its desire to return to profit.
“Philips remains ahead-of-plan in optimizing its TV operations and will book approximately EUR 66 million in charges in the second quarter of 2008, which are largely related to these efforts” said Philips.
Philips said IT Displays sales came to approximately EUR 600 million in 2007.