Wednesday, July 23rd21.5°C
22714
22455

Philips lights 'for sale' sign for LED parts business; arm had $1.91 billion in sales in 2013

AMSTERDAM - Royal Philips NV said Monday it plans to spin off its fast-growing LED parts business into a separate company, to win new customers and to capitalize as manufacturers integrate LED lights into an ever-widening array of products.

Philips, the world's largest lighting producer, says the separation will be complete by early 2015 but it is not clear yet whether the division will seek a separate listing, or if it will remain within Philips for a time before it is sold. Philips executive Pierre-Yves Lesaicherre, who currently heads the parts division, will remain as CEO of the new company.

LED sales are surging, as they can be programmed to emit light of different colours and need less energy than traditional lights. Manufacturers such as Philips, General Electric and Cree of the United States, as well as Germany's Osram, which was spun off from Siemens last year, all saw their LED sales rise at well above double digit rates in 2013, even as the price per bulb fell.

Philips' LED parts business, which is a major supplier to carmakers, had sales of 1.4 billion euros ($1.91 billion) in 2013.

Philips is prepared to become a minority shareholder in the parts business and will remain a big customer as it continues to sell its own branded lights and services, said Philips Chief Executive Frans van Houten.

Van Houten said the spin-off was not due to concerns LEDs themselves are becoming a commodity, despite recent price declines.

"I can assure you it is a very sound business with great margins and good profitability," he said. "At this stage, given the strong intellectual property and differentiation" of Philips' LEDs, "we think we can compete very well with Asian competitors."

The Canadian Press


Read more Business News

22567


Recent Trending




Today's Market
S&P TSX15363.34+48.21
S&P CDNX1011.550.67
DJIA17097.07-16.47
Nasdaq4473.882+17.866
S&P 5001988.10+4.57
CDN Dollar0.9317+0.0004
Gold1313.40+4.2001
Oil104.30-0.29
Lumber332.60+0.20
Natural Gas3.796+0.024

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.04
Cantex0.065+0.005
Anavex Life Sciences0.325-0.005
Metalex Ventures0.07+0.005
Russel Metals35.63+0.03
Copper Mountain Mining2.77-0.06
Colorado Resources0.22+0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.19+0.01

 



22447

FEATURED Property
2005277928 McCartney Road
5 bedrooms 3 baths
$549,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22097