Investors in Dutch electronics group Philips can look forward to healthy profits in all units from next year, its chief executive said today.
After ten years of turbulent restructuring, the once-sprawling conglomerate is on the brink of entering calmer waters with steady growth and profits in all divisions, Mr Gerard Kleisterlee said in an interview.
The company - which used to make products as diverse as fridges, computers, televisions and telecoms equipment - has reduced the number of its business units from over a dozen to just five - consumer electronics, domestic appliances, chips, lighting and medical systems - and will now be much more cautious about entering into new ventures.
"I think the risk [for investors] has become much smaller," Mr Kleisterlee said. Philips in the past blew fortunes on mobile phones, cd stores, new media initiatives and superchips.
"It's our ambition to have all units performing well in 2004. I think we've laid a good foundation this year." he said.
Next year could be the first year that all five business groups of Philips, the world's largest lighting maker and Europe's top consumer electronics producer, combine to produce healthy profits.
Philips's chip unit was loss-making in the second quarter and consumer electronics was barely breaking even. Both are being restructured and should ring in profits by year-end.