UK

Electronic Giant Philips To Sell Its Home Entertainment Arm To Japan's Funai Electric

29/01/2013 10:13 GMT

Dutch electronics giant Philips has said it will sell off its home entertainment business, which includes its hi-fis and DVD players, to Japan's Funai Electric.

The company will focus instead on its healthcare, light bulbs and home appliances offerings, according to a statement released on Tuesday.

This will see it stop stocking items such as hi fis, dvd players and stereos, where it had been struggling to compete with cheap Asian alternatives.

Philips' consumer division will focus on appliances such as toasters, shavers, juicers and coffee makers.

The announcement follows its decision last year to offload its loss-making television unit to a new joint venture arrangement with Hong Kong's TPV.

Chief executive Frans van Houten said he expected sales in the UK and US to be slow in the first few months of 2013, picking up towards the end of the year, because of the challenging economic environment.

Philips also reported a 355 million euro (£304m) loss for the last three months of 2012, but this was in line with expectations as it had faced a 509m euro (£436m) fine imposed last year by the European Commission for participating in a cartel to fix prices in the television business.