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Philips 3Q TV-Making Loss Widens

Oct 13, 2008  •  Post A Comment

Royal Philips Electronics’ third-quarter loss from its television-making operations widened as sales fell while it prepared to outsource its TV sales in North America to cut operating losses.
The Dutch conglomerate’s TV operating loss widened 70% to $98.6 million from $58.1 million a year earlier, Philips said today. TV sales fell 21% to $1.62 billion. TV revenue accounted for 19% of the parent company’s sales, down from 23% a year earlier.
Philips said in April that it would outsource its North American TV production to Tokyo-based Funai Electric for at least five years starting in September. Total restructuring charges were estimated in July to cut Philips’ earnings by $168.8 million this year.
Global TV revenue growth is expected to slow to 5% this year from 6% in 2007 while sales will decline 3% next year from falling TV prices, NPD Group unit DisplaySearch said last month. Last week, Japan-based Sharp, the world’s fifth-largest TV maker in the second quarter, said net income for the six months ended Sept. 30 fell 44% to $247.1 million, partially because of decreased profitability from its liquid-crystal display television sales.

One Comment

  1. These cats should have tanked years ago. Their quality control is non-existant.

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