Philips announces update to markets following value adjustment

Philips has announced it has updated the markets, following its adjustment of Lumileds’ price.

The move, originally indicated on December 4th last year, will mean the business’s book value is now 232 million euros (216.9 million pounds).

Philips said the value adjustment was a consequence of reduced short-term market demand.

The company added the “uncertain outlook” was caused by the current economic climate.

Philips noted the change to Lumileds’ price will be included in the results for 2008’s fourth-quarter results, set to be published on January 26th.

Last month, the organisation announced it had acquired aerosol therapy business Medel.

Speaking at the time, Philips Home Healthcare Solutions chief executive officer Don Spence said the purchase built the group’s high-growth compressor nebuliser systems franchise.

He added the acquisition would allow the company to “better serve the needs of our customers and their patients”.

In 2007, Philips’ healthcare business accounted for 24 per cent of the group’s overall sales.