In a further shake up of  their struggling consumer electronics division Philips  has agreed to transfer its TV assembly facility to an electronics manufacturing services company based in Luxembourg. Philips said the transfer would help improve the financial performance of its TV business through the optimization of its global supply base.

According to TWICE, Philips also reported that as of Aug. 15, it successfully implemented its previously announced brand-licensing agreement under which sourcing, distribution, marketing and sales of all Philips' consumer TV activities in the United States and Canada are being outsourced to Funai Electric. Philips said it has commenced deconsolidating the involved business as per the same date.

The agreement stipulates that Philips receives royalty payments in exchange for Funai's right to exclusively use the Philips and Magnavox brand names for its consumer TV offerings in North America for a minimum five-year period with options for further extension.

Philips said it "will continue to further improve the financial performance of its former consumer electronics businesses through ongoing optimization of the portfolio and its global supply base, as well as by focusing its marketing and sales efforts on the strongest markets."