Philips announced Tuesday that it has sold business assets covering multimedia devices and accessories to Japanese firm Funai Electric in a cash and brand licensing deal worth $201.8 million.
"Our consumer lifestyle business was margin dilutive to the group, so it was time to decide to move away from consumer electronics," said CEO Frans van Houten during the company's earnings presentation.
For the past two years, Van Houten has been focusing on streamlining Philip's operations to highlight profitable divisions such as LED lighting and control systems and hospital scanners.
Philips reported a $482 million fourth-quarter net loss, doubling 2011's $218 million loss, and warned that the company will go through a slow start this year. Philips managed to save $635 million at the close of 2012. Van Houten pledged to target $1.48 billion in savings by 2014, according to the Wall Street Journal.
