Philips and Lucent agree to terminate loss-making mobile-phone venture

Article Abstract:

Philips Electronics NV of the Netherlands decided to back off from its goal to become a dominant mobile-phone maker in the world by pulling out from its unsuccessful joint venture with Lucent Technologies Inc. Both companies will be able to regain the assets they invested into the partnership which lasted for almost one year. Philips CEO Cor Boonstra predicted that financial results from 1998 will be affected by this development which will prevent Philips from venturing into the US telephone handset market.

Comment:

Decides to pull out from unsuccessful joint venture with Philips Electronics NV

United States, Telephone Apparatus Manufacturing, Joint ventures, Telephone Equip NEC, Lucent Technologies Inc., Telephone equipment, Article, Philips Electronics NV

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Philips' operating loss halts recovery, raises questions about CEO's future

Article Abstract:

Philips Electronics NV posted an operating loss of 853 million guilder ($438.5 million) for the fourth-quarter of 1998. The loss ended the company's two-year financial recovery. Philips' performance was seriously affected by the Asian economic crisis, and costly venture in the US. During the same period in 1997, Philips posted a 1.16 million guilder operating profit. Quarterly sales also dropped 6% to 19 billion guilders.

Comment:

Posted operating loss of 853 million guilder ($438.5 million) for the fourth-quarter of 1998

Sales, profits & dividends, Other Electrical Equipment and Component Manufacturing, Electronics, Electronic Components and Accessories, Finance, Koninklijke Philips Electronics N.V., Abstract, Electronics industry

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