UPDATE: Philips To Write Down EUR232 Million On Lumileds Subsidiary
January 19 2009 - 8:31AM
Dow Jones News
Royal Philips Electronics NV (PHG) Monday said it will write
down EUR232 million on the book value of its Lumileds lighting
subsidiary.
The company said the value adjustment is the result of slowed
demand in the automotive and consumer sectors. After the impairment
costs, Lumileds' book value will be EUR637 million, Philips
said.
The value adjustment of Lumileds is part of a larger write-down
scheme Philips announced in December, without providing financial
details.
Due to plummeting demand, the company said it expects to write
down approximately EUR1.1 billion in the fourth quarter, especially
on its financial stakes in LG Display and NXP Semiconductors.
The Amsterdam-based maker of shavers, lighting and high-end
medical equipment added it no longer expects to double earnings
before interest, taxes and amortization, or EBITA, per share from
2010. Philips also announced accelerated restructuring
measures.
The company reports its fourth-quarter and full-year results
Jan. 26.
At 1250 GMT its shares were trading up 1.8% at EUR13.80.
-By Maarten van Tartwijk, Dow Jones Newswires; +31-20-571-52-01;
maarten.vantartwijk@dowjones.com
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