Electronics giant Philips on Tuesday reported 2012 net profits of 231
million euros (311 million dollars), after losses of 1.29 billion euros
in 2011, and announced the sale of its entertainment business to focus
further on health products.
Company profits were nevertheless hit by a
loss of 355 million euros in the fourth quarter because of a one-off
509-million euro European Commission fine for cathode ray price fixing,
Philips said in a statement.
Under the entertainment deal, Philips
long-term partner Funai will pay 150 million euros plus an unspecified
licence fee to use the Philips brand in audio, multimedia and
accessories for an initial period of five and a half years, with an
option to renew for five years.
That deal will be closed by the
end of 2013, while the video business will be transferred in 2017
because of Philips' existing licence arrangements.
transaction we are taking another step in reshaping the consumer
lifestyle portfolio and transforming Philips into the leading technology
company in health and well-being," Philips chief executive officer
Frans van Houten said in a statement.
"I am confident that today's
agreement with Funai, our partner for over 25 years, will create a
promising future for Philips audio, video and entertainment, and
continuity for our customers.
Funai CEO Tomonori Hayashi said: "This is truly an exciting time for us at Funai."
will benefit from Philips' legendary know-how and innovation, as well
as the excellent talent they have in place around the world," Hayashi
was quoted as saying.
"Additionally, this will give Funai the
opportunity to meet our goal of expanding our business into markets
including Brazil, Russia, India and China."
The company, which
employs around 122,000 people globally, has been historically known for
its televisions, small appliances and light bulbs, but has sought over
the last decade to develop activities in the medical equipment and
In April last year the company sold its troubled television branch to TPV Technology.