Koninklijke Philips Electronics NV (NYSE:PHG) has released its fourth quarter earnings report and announced that it will sell off its audio/video unit to FUNAI ELECTRIC CO.,LTD. (TYO:6839). The company sold off its television business to China’s TPV Technology Ltd. last year, boosting its third quarter profits.
Philips announced today that FUNAI ELECTRIC CO.,LTD. (TYO:6839) will pay $202 million for its consumer lifestyle entertainment division. In addition, Funai will license the Philips brand name for 66 months. The division being sold by Royal Philips Electronics NV includes several consumer products, like DVD players and home speakers. They will still carry the Philips name, but Funai will be manufacturing and developing them.
Philips has been shifting its focus from consumer electronics towards the lighting industry. It is now the largest lighting manufacturer in the world. The company will also focus on health care equipment.
Koninklijke Philips Electronics NV (NYSE:PHG) also reported its fourth quarter profits today. The company was hit with a $684 million fine from European regulators after being accused of price fixing. However, other than that fine, the report was good. The company reported that sales in its lighting division increased 43 percent, while its earnings were up 50 percent (excluding the fine) to $1.2 billion.
Because of the fine however, the company’s net loss for the fourth quarter rose to 481 million from $218 million during the same quarter a year ago. In spite of that loss, the company’s full-year net profit was $304 million, a significant increase from the net loss of $1.73 billion the year before.
Shares of Koninklijke Philips Electronics NV (NYSE:PHG) rose 3 percent at the New York Stock Exchange on Tuesday.