Philips sets out to become market leader

Article Abstract:

Philips Electronics NV has launched efforts in a move to establish itself as a leader in the worldwide consumer electronics market, which is estimated at $385 billion and has an annual growth rate of 8% to 12%. The company has started looking more seriously at marketing, spending hundreds of millions of guilders in advertising to bolster its brand awareness in the US, for instance. In the past two years, Philips cut nearly 6,000 workers in its troubled, former Sound and Vision Division. Philips has also closed the wide gaps in its product range. For instance, it has entered a 60-40 joint venture with Lucent Technologies Inc. in a move to become a global maker of mobile phones and other consumer-communications products.

Comment:

Has launched efforts in move to establish itself as leader in worldwide consumer electronics mkt, w/c is estimated at $385 bil

Strategy & planning

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Philips investors ask: where next?

Article Abstract:

Philips Electronics NV of the Netherlands is expected to post a 30% or higher decline in operating income for the third quarter of 1998 compared to the 721 million guilders it reported for the same period in 1997. The company, which is expected to dissolve its one year-old, 60%-owned joint venture with Lucent Technologies Inc., has warned its investors of flat earnings for the whole of 1998, a departure from the double-digit increases it predicted in 1997. Philip's expected dissolution of the cellular phone products joint venture is seen by analysts as a major setback for the company.

Comment:

Is expected to post a 30% or higher decline in operating income for the 3rd quarter of 1998 compared to 1997's 3rd quarter

Sales, profits & dividends

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Philips will buy ATL for $800 million

Article Abstract:

Philips Electronics NV will purchase ATL Ultrasound Inc., a US-based manufacturer of ultrasound-diagnostics systems, for $800 million. The acquisition of ATL called for Philips to pay a cash of $50.50 for every ATL share in a tender offer that is slated to open on Aug. 4, 1998. The Philips-ATL deal will substantially bolster the medical division of Philips as hospitals prefer to purchase integrated diagnostics systems from one supplier rather than purchasing stand-alone equipment. ATL, which employs 2,600 workers, achieved $430 million in sales in 1997.

Comment:

Will purchase ATL Ultrasound Inc, a US-based manufacturer of ultrasound-diagnostics systems, for $800 mil, USA

United States, Asset sales & divestitures, Acquisitions & mergers, Foreign operations, Electromedical and Electrotherapeutic Apparatus Manufacturing, Ultrasonic Diagnostic, Monitor Eqp, Ultrasonic diagnostic equipment, ATL Ultrasound Inc.

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