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Philips to divest non-medical units
Philips Electronics of the Netherlands reported this month that it is planning to divest nine smaller business units as part of its plan to return to profitability. The units, which employ about 1500 people, are part of the Philips Industrial Electronics
Philips Electronics of the Netherlands reported this month that it is planning to divest nine smaller business units as part of its plan to return to profitability. The units, which employ about 1500 people, are part of the Philips Industrial Electronics division.
Industrial Electronics is one of several units in Philips' Professional Products and Systems group, which also encompasses Philips Medical Systems. Philips said the divestitures should enable the company to focus on its key businesses, such as the medical systems division. The divestitures are expected to be completed by the end of this year.
While Philips Medical Systems performed well in 1996, other sectors of the company have struggled to reach profitability (SCAN 3/5/97). Philips chief executive Cor Boonstra has stated his intention to shed unprofitable units to get the company back into the black.
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