Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, September 26, 2014

Article Excerpt

PHILIPS ELECTRONICS N.V. ADRs, $32.00, New York symbol PHG, plans to break itself into two separate, publicly traded companies by the end of 2015. One firm will consist of Philips’s lighting solutions business, which accounted for 32% of Philips’s 2013 sales of 22 billion euros (1 euro = $1.42 Canadian). These operations design and build light emitting diode (LED) systems for cities, arenas and other large-scale uses. This new company will not include Philips’s LED components and automotive lighting manufacturing operations, which it plans to set up as a separate firm. Philips still intends to sell a portion of this business, either to the public or to private investors. The second stand-alone company will consist of Philips’s health care and consumer products operations (68% of 2013 sales). Health care products include x-ray scanners, ultrasound systems and defibrillators. The consumer business makes a variety of products like electric shavers and coffee makers. Philips expects costs related to the breakup to total 50 million euros a..