Electronics giant Philips has signed an agreement to farm out its television production to Chinese firm TPV Technology through a joint venture in which the Dutch firm will have a 30% stake.

Philips’ television arm is loss-making and there had been widespread speculation it would be either sold or production farmed out.
TPV will continue to produce televisions under the Philips label and has the right to use the brand for five years ‘under certain strict quality and customer care conditions’, the company said in a statement.
First quarter
The electronics giant booked lower earnings than expected in the first three months of this year.
Sales reached €5.3bn, compared with nearly €5bn a year ago. However, net profit was just €138m, compared with €201m a year ago and well below analysts’ forecasts.
Philips had warned earnings would be down because of the Japanese earthquake and tsunami, which have affected its supply chain.