Philips Takes U.S. $500 Million Charge on Displays Unit
Dec 22, 2005
 Print this page

Consumer electronics and personal care appliance maker Royal Philips Electronics NV said it would take a 418 million euro (approx. U.S. $499.7 million) charge in the fourth quarter on its LG.Philips Displays LPD unit, which makes cathode-ray tubes and has experienced strong declines.

The company said it would write off the entire 128 million euro (approx. $152.8 million) book value of the unit, which is a joint venture with South Korea's LG Electronics Inc., but it would not have an impact on earnings again after this quarter.

The impairment charge is non-cash, but Philips said it would also take a cash charge of 42 million euros (approx. $50.1 million).

The company reported a third-quarter net profit of 1.44 billion euros (approx. $1.73 billion) on sales of 7.63 billion euros (approx. $9.22 billion) in October 2005. (AP)

Back to Breaking News