Philips

Philips Hue

Philips said on Monday it is spinning off its lighting components business in the latest stage of the once-diversified Dutch electronics group’s plan to focus on a handful of higher-margin activities. Philips said it would seek outside investors for its Lumileds Lighting unit which it will combine with its automotive-lighting business. Sales of the combined businesses were around €1.4 billion ($1.9 billion) in 2013, or about 17% of Philips’s total lighting sales. With the move, Philips Lighting, which contributed more than a third of the group’s €23.3 billion revenue last year, would focus on selling integrated lighting systems and services and the software needed to operate those systems. The businesses that will be separated primarily manufacture LED components used in products ranging from televisions and smart phones to traffic lights.

Read the full story at The Wall Street Journal.

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