Electronics giant Philips posts 27% drop in Q1 profits
The Hague: Dutch electronics giant Philips on Monday posted a 27 per cent drop in first quarter profits, hit partly by the costs of restructuring and some acquisitions as it evolves its portfolio.
Net income fell in the first three months to 94 million euros ($115 million) compared to 128 million euros over the same period in 2017, the company reported in a statement.
Best known for the manufacture of light bulbs, electrical appliances and television sets, the Amsterdam-based company has gradually pulled out of these activities in face of fierce competition from Asia.
It focuses now more on high-end medical and health technology, such as computer tomography and molecular imaging, as well as household appliances.
Sales in the first quarter stood at 3.9 billion euros, 2.0 percent down on 4.03 million euros in 2017.
But the company stressed that was a comparable growth of 5.0 percent taking into account such issues as currency fluctuations, and the shedding of the Philips Lighting arm.
"While there is more work to be done, 2018 started well," said chief executive office Frans van Houten.
Restructuring and acquisition charges came to a hefty 64 million euros in the first quarter of 2018, compared to just 24 million in the same period last year. The 2017 first quarter profits also got a boost from a 59 million euros gain from selling some real estate.