Eindhoven (Netherlands), Feb 12: Profits of Philips Electronics consumer products division rose sharply in 1997 as loss-making Grundig and a large 1996 restructuring charge were stripped out of the equation.Income from consumer products in 1997 rose to 772 million guilders, three per cent of sector revenues, from 10 million guilders in 1996.
"The increase was primarily attributable to the fact that Grundig's losses were no longer included, higher licence revenues and a significant restructuring charge of 157 million guilders in 1996," Philips said in a statement.
Consumer product sales, however, dipped by one per cent in 1997 to 23.8 billion guilders, but, said Philips, they rose five per cent on a comparable basis.
Lower prices had an eight per cent negative effect, while sales volume had a positive effect of 13-per cent.
Sound and Vision, Philips' audio and video products division, saw a sharp increase in income as restructuring started in 1996 took affect. However, sales fell one per cent on acomparable basis due to a decline of principal markets which absorbed higher volumes, but pressured prices.
Philips said losses at Philips Consumer Communications' resulted from costs of development and introduction of new products, delayed product launches and substantial costs for integration and expanding of a global organisation.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
