Philips is restructuring again, moving high-powered LEDs and car lights into a standalone unit. The split should help the fast-growing business attract outside capital, says Breakingviews.
For some restructuring again some breaking news likes amnesty would -- -- about this storage system. Just give us have an outline of exactly what I planning obscenity says do what we have a Phillips is quite a confusing conglomerates in some senses anyway it's. Called three. Main business is -- things. Health care. Consumer products which you you know you may be very familiar with two questions about some things. I want is doing today is has decided to its in its lighting business is gonna separate Tamil. Two of its businesses which I think combined represent about seventeen. To sensitive. Revenue would enlightening enlightened itself is probably about 37% to. Of great revenue but is doing this because like -- has quite a enough to picture -- is quite. Hard to know what's going on with our business because there's one big trends that is reshaping. -- lighting business around the world the Nazis a move away from conventional light bulbs as you know I would I would know them and use them for many years. To any do you like to reformist everything I'm not saying you know course and decentralized and two guys that. This is much more efficient but by the same token you don't get as good margins from your business. And that should return memorizing. In her laurels is who have allies and automobile -- Sunday at bringing these two together one point four billion -- business. The sort of listing as well so it. We don't neither side -- until law auctions they want to attract thought -- capital and the idea here is that. These two businesses and to the highest great businesses enlightening and as I said there -- lots of attack. Not doing so while site if you can get capital to these businesses because it tells him grow even false. I'm balls ram of course as I was was was listed by Siemens loss. I'm so this clearly a trend in this direction I think thousands -- struggled a little bit since then it's all the factories have to make quite a few layoffs. -- Is -- a business affairs can can can make good can make what precedent and Siemens. Well as Iran's dollars and you know or run his whole life seems like some business and what Phillips has done here is that I can record high -- -- too volatile businesses that we can spin off and keep separate. Or organize it in an obvious benefit not set in one option. And that is I think a good idea because as I said this is. This is difficult to understand from investors are difficult scenario. And I think that. -- -- every child is crying actually fall students like he does this overruled and and -- from inside it looks like it's a better place for an investor looking to to buy into iTunes right. Just sort of conservatives are bigger picture somehow -- Phillips and he's being credited with very big thing since he took the top job I spoke to a few guys -- doubles. This -- loss thereabouts. About what he's taking the business. Your feeling though is once again this is a good move on has. Well known if you have a look at this Graf head inside. I think can he take over full attendance. Twenty left hand right they do restructuring that that happened continues -- -- -- about here. Since then the shows have done very very nice as you as you consider it an attorney sort of in the lost. Courts or whether they come off of that that was a lot of I was to do with the lighting business I mean -- revenue in the lighting business was was flat year on year and he's got. Actually Matt Ramsey -- muscles around it. The great restructure he's coming back for more target who wins who happens to Sampras thanks very much indeed don't delegate from breaking views the US shows that twelve birdies in 1730 bsc. I'd like to -- for -- is what is.