Amsterdam, the Netherlands – Based on the most recent developments in the market, Royal Philips Electronics (NYSE: PHG, AEX: PHI) updates the market on the financial performance of the company’s Television business in the first quarter of 2011.
Pricing pressure remained severe in the television market, while Philips took clear actions to further reduce inventory as previously indicated. Philips said on January 24 of this year, when it reported its fourth-quarter results, that inventory in the channels for its Television business would cause some headwind in the early part of the year and the company now expects an EBITA loss for the TV business of between EUR 100 million and EUR 120 million for the first quarter of 2011.
Philips reiterates that profitability in its Television business remains a major issue and resolving this is an absolute priority for the company.
The company is scheduled to report first-quarter earnings on April 18, 2011.