Philips NV’s first quarter figures, showing a plunge in operating profits before an extraordinary gain of $177m to just $3.2m, highlight the urgency for the company to find a solution to the problems of its computer business, losses at which were largely blamed for the profit plunge: the only name that has been mentioned as a possible partner is Ing C Olivetti & Co SpA, but Philips says it is talking to several companies, and a deal in which the company handed much of the business over to ICL, which has plenty of products that it could put through Philips’ outlets, in return for a minority stake in the enlarged group, would make sense – but substantial closures would be required at Philips to make the thing work.
