Philips: stock down - due to sell domestic appliance unit
(CercleFinance.com) - The Philips share is down over 3% on Tuesday afternoon, with the Dutch electronics group announcing that it wants to examine the options for its household appliance business.
It will create a separate legal structure for this business, which should be completed in the next 12-to-18 months.
The domestic appliances business reported 2019 sales of 2.3 billion euros.
"We have significantly improved the performance of the Domestic Appliances business over the years, which has made a very important contribution to Philips, however this business is not a strategic fit for our future as a health technology leader," said Frans van Houten, CEO of Royal Philips.
"We are also committed to a seamless transition of the Domestic Appliances business with continuity for our employees, partners and customers," he added.
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