PHILPS plans to sell Lumileds subsidiary

PHILPS CEO million recently told investors on Houghton, Lighting Department North American business performance unsatisfactory, he has appointed a new head of PHILPS lighting business of the United states. He added that the lighting performance affected by the deterioration of the environment of the market sales hit in Chinese, but the broader lighting sector performance point of view, with the signing of such as Madrid Street upgrade contract, LED solid-state lighting products based on the continued rapid growth in sales.

000 Houghton said: "the LED lighting sales growth of 20%, although the price erosion affects LED extended its profits, but the growth is still strong. As of the end of 2014, LED accounted for 37% of the lighting business revenue, compared with a year ago, the same period in, sales of traditional lighting products fell by 14%. "

PHILPS also plans to sell its automotive lighting company and LED chip manufacturing subsidiary Lumileds, and said it is working with outside investors to discuss the transaction is expected to be completed in the first half of 2015. In the past 12 months, Lumileds and automotive lighting company employs a total of 8300 people, sales of $1 billion 400 million, net income of $141 million. 000 haodon said in December last year has received some non binding bid bid.

PHILPS predicts that by 2018, the average annual growth rate of high power LED lighting market is 17~21% (CAGR), while the overall growth of the lighting market is 3~5% per year. From the traditional inefficient products to efficient semiconductor technology, this rapid change in the lighting industry, prompting PHILPS spin off both lighting business and Lumileds/ automotive lighting, and requires rapid innovation.

000 haodon claimed that PHILPS will than the closest competitor in the relevant research and development costs increase 30% of the cost to grasp the pace of technological development. He is also expected to bring optimization management and operation of the data transmission lighting system is emerging in this emerging field, which means that in the next four years the market will expand to 1 billion euros (about RMB 7 billion). During this period, PHILPS will focus on a huge project, namely the upgrade and replacement for the Spanish capital Madrid city lighting, replace the total number of about 225000 street lamps, this is by far one of the largest city lighting engineering replacement. The project is expected to save about 44% of the city's lighting energy consumption. 000 haodon also said that the new system will include a "command center", which means that the whole city lights can be in a single control point control.

In addition, PHILPS will also be sold in India, more than 1 million 500 thousand LED lights, available for more than 1 million families, which means to save 80MW electricity in India.

Overall, PHILPS 2014 sales fell 1% to 21 billion 400 million euros, 000 haodon said the main reason is the main market demand such as Chinese and Russia weak. PHILPS will face further challenges in 2015, the restructuring plan is expected to cost up to 400 million euros, and this time next year, PHILPS lighting division can be regarded as a fully independent entity.

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