Philips looks to sell domestic appliances business

Philips looks to sell domestic appliances business

Dutch health technology company Philips said on Tuesday it is looking to sell its domestic appliances division, whose coffee machines, air purifiers and airfryers generated 2.3 billion euros ($2.6 billion) in sales last year.

Philips said it would carve out the business in the coming 12 to 18 months, while it reviewed its future options.

“This business is not a strategic fit for our future as a health technology leader,” Chief Executive Officer Frans van Houten said.

Once a sprawling conglomerate, Philips has transformed itself into a specialised health technology company in recent years, spinning off its lighting and consumer electronics divisions.

“We are committed to finding a good home for this business, as we expand and invest in our consumer health and professional healthcare related businesses.”

Philips also reported fourth-quarter adjusted earnings before interest, taxes and amortisation (EBITA) of 1.066 billion euros on sales of 5.96 billion euros.

Analysts polled by the company on average had expected core earnings of 1.07 billion euros on sales of 6.03 billion euros.