Philips Says Lighting Unit Sale Hits Regulatory Hurdle in U.S.
26 Outubro 2015 - 5:36AM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM--Royal Philips NV on Monday warned that the planned
sale of its lighting components and automotive lighting operations
hit a regulatory hurdle in the U.S., as it returned to a net profit
in the third quarter.
Philips said the Committee on Foreign Investment in the U.S. has
expressed "certain unforeseen concerns" on its planned sale of a
80% stake in its Lumileds business, without providing further
detail. The company said it would "take all reasonable steps" to
address the committee's concerns but that the closing of the deal
was now uncertain.
The Dutch company in March agreed to sell the stake to
investment group Go Scale Capital for $3.3 billion, in what was the
first step in a two-part plan to exit the lighting business to
focus on medical equipment and consumer-lifestyle products. The
remaining lighting activities are being prepared for a possible
initial public offering and the separation activities remain on
track, Philips said.
The news came as Philips reported third-quarter results that
beat analysts' forecasts. Net profit for the period came in at
EUR324 million ($357 million), compared with a net loss of EUR103
million in the same period a year earlier. Revenue rose 12% to
EUR5.8 billion, compared with EUR5.2 billion a year ago. Earnings
before interest and tax excluding restructuring charges and other
special items reached EUR570 million, compared with EUR474 million
last year.
Chief Executive Frans van Houten said the results showed that
Philips' operational performance is strengthening despite more
challenging economic conditions, particularly in China.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
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(END) Dow Jones Newswires
October 26, 2015 03:21 ET (07:21 GMT)
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