Philips to drop 'Electronics' name
2013-02-25 17:00
The Hague - Dutch manufacturing giant Philips said on Monday
it intends to drop the word "Electronics" from its name as it shifts
away from consumer-based entertainment towards health, well-being and lighting
products.
Based in Eindhoven in the southern Netherlands, Philips
announced in late January it was selling its lifestyle entertainment branch,
which makes audio, video and multimedia products to Japanese company Funai in a
$199m deal.
The proposal to drop the word "Electronics" to
rename the company "Royal Philips" will be put to shareholders at the
annual general meeting in Amsterdam on 3 May, Philips said in a statement.
"Philips is a diversified technology company focused
on delivering meaningful innovation in healthcare, energy-efficient lighting
and consumer health and well-being," its chief executive Frans van Houten
said.
"We believe having Royal Philips as our new company
name will position us well in our endeavour to make the world healthier and
more sustainable," he added.
Founded in 1891, the company specialised for years in
making light bulbs and later televisions.
In the last decade however, it has diversified into
manufacturing medical equipment such as resonance scanners.
It has been operating under the name "Philips
Electronics" since 1991 and "Royal Philips Electronics" since
1998.
"We believe the new name better reflects that
consumer electronics is not our priority anymore," Philips spokesperson
Steve Klink told AFP.
"The name change is a step in a process that we
began several years ago," he said.
Last year, Philips finalised the sale of its
television-making arm - a victim of competition from Asia - and the Funai deal
in January saw Philips stop manufacturing products such as stereos and DVD
players.
The company, however, will continue to make small
appliances such as razors, electronic toothbrushes and coffee makers.
"It won't change much for our customers at the
moment," Klink said adding that the companies that bought its television
and entertainment arms have signed an agreement with Philips to allow it to continue
use of the company's brand name for the next few years.
- SAPA
