Philips makes value adjustment to Lumileds

Due to short-term market demand and uncertain outlook, Philips is reducing the book value of its Lumileds subsidiary.

Royal Philips Electronics has announced that it will impair the book value of its Lumileds business by EUR 232 million (approximately $305 million).

This move was initially indicated during the company’s investor and analyst day on December 4, 2008.

Philips said the value adjustment was “a consequence of reduced short-term market demand and uncertain outlook caused by the current macro economic downturn.”

The adjustment will be booked in the company’s results for the fourth quarter of 2008, which will be published on January 26, 2009.

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