Dutch Philips Electronics said on December 21 that it will take a 418 million euros ($500 million) non-cash charge for its cathode-ray tube joint venture LG.Philips Displays.
In addition, Philips said it would take a cash charge of 42 million euros associated with guarantees provided to the joint venture's banks.
LG.Philips Displays, a cathode ray tube manufacturing joint venture between Philips and South Korea's LG Electronics Inc, announced earlier that it will take a $725 million charge in the fourth quarter, citing falling prices for flat-panel televisions.
The 418 million euros Philips non-cash charge is made up of a 128 million write-off of the remaining value of its investment in LG.Philips Displays and a cumulative currency devaluation of about 290 million euros related to that investment.
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