Business Briefs: Philips to sell home appliances unit

Philips to sell home appliances unit

Dutch health technology company Philips said yesterday it is looking to sell its household appliances division, whose coffee machines, air purifiers and air fryers generated €2.3 billion (S$3.4 billion) in sales last year.

The company 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.

Philips has transformed itself into a specialised health technology company in recent years, spinning off its lighting and consumer electronics divisions. It also reported fourth-quarter adjusted earnings before interest, taxes and amortisation (Ebita) of €1.066 billion on sales of €5.96 billion.

REUTERS


Swiss watch export growth slows

Swiss watch export growth weakened to its slowest pace in three years, as the market for lower-priced timepieces has evaporated and the coronavirus outbreak threatens the industry.

Swiss watchmakers will be challenged to find markets to offset China, where consumption will likely slump because of the virus spread.

Shipments rose 2.4 per cent to 21.7 billion Swiss francs (S$30.4 billion) last year, the Federation of the Swiss Watch Industry said yesterday. Exports to Hong Kong - its top export market - dropped 11 per cent as political protests led to store closures.

Switzerland exported almost 50 per cent more timepieces to China last December.

Shipments of Swiss watches by units fell to its lowest level since 1984 - down 13 per cent to 20.5 million - as the industry focused ons higher-priced models.

BLOOMBERG


GM to invest in electric car hub

General Motors (GM) said on Monday that it was investing US$2.2 billion (S$3 billion) in a Detroit plant, where it will produce all-electric trucks and sport utility vehicles.

The investment will fund upgrades - like new machines and tools - at the Detroit-Hamtramck assembly plant's paint shop, body shop and general assembly area.

The plant had been scheduled to close this month, but was spared in the October deal that ended the longest GM strike in half a century.

As part of that agreement, GM vowed to commit US$3 billion to the plant's overhaul.

Once in full operation, the plant will employ more than 2,200 people, the company said. Production is scheduled to begin late next year on an all-electric pick-up truck.

NYTIMES

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A version of this article appeared in the print edition of The Straits Times on January 29, 2020, with the headline Business Briefs: Philips to sell home appliances unit. Subscribe