Philips Names New CEO, Splits Off Some Businesses

NEW YORK — NV Philips, the Dutch electronics giant, Monday named a new chief executive at North American Philips Corp. and split off $1 billion worth of peripheral operations into an independent subsidiary.

Philips said the changes, which will take effect Sept. 1, were intended to “further integrate the Philips organization in the U.S.A. into the global activities of the company.”

Philips, Europe’s largest electronics company and the world’s No. 1 television manufacturer, last week reported a 44% decline in its second-quarter profit. It blamed foreign-currency losses and competition from Southeast Asia.

Named to be chairman and chief executive of New York-based North American Philips was Gerrit Jeelof, who will continue as executive vice president and vice chairman at the parent company, based in Eindhoven, Netherlands.

Defense Unit Included

Cees Bruynes, who has held the top post at North American Philips, will become the chairman and chief executive of a new subsidiary, Consolidated Electronics Industries Corp., Philips said.

The new subsidiary will include the Magnavox defense contracting business, which had to be kept independent of the Dutch-based company because of Pentagon rules. It will also include a variety of peripheral businesses ranging from Anchor Brush toothbrushes and Genie garage door openers to Selmer musical instruments and Magnavox cable television equipment.