Philips to close a third of its plants

As a result of overcapacity, Philips N.V. plans to close roughly one third of its production facilities worldwide by the year 2002, the company confirmed today.

Within four years, the Dutch electronics concern plans to reduce its plants from 244 to about 160, Philips chairman Cor Boonstra said in a newspaper interview this weekend.

That is a "ballpark" figure, according to a Philips spokeswoman, who said she could give out no further details on what kinds of facilities the company will be shutting.

"This just confirms the direction we said we are taking when we released our third quarter results," the spokeswoman said. "We will be consolidating."

Philips will be concentrating on the areas of semiconductors, lamps and medical technologies, Boonstra said in the interview.

Citing poor sales in consumer products, semiconductors and components, Philips saw its net income plummet 70 per cent in the third quarter ended Sept. 30. The company's net income totalled 425 million guilders ($AUS365 million), down from 1.43 billion guilders the same period the previous year, and third quarter revenue was also down from 18.88 billion to 16.13 billion guilders.

Philips is also in the process of dissolving a disastrous joint venture with Lucent Technologies Inc., calling the mobile phone venture a disappointment for both partners. Formed in 1997, Philips Consumer Communications has seen "adverse income developments" in the first nine months of 1998, Philips said last month. Philips owned 60 per cent of the venture, Lucent the remaining share.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?