The economic crisis has pushed the quarterly profit of Dutch electronics company Philips down. Philips announced that net profits dropped by more than 11% to 162 million euro, but it emphasises that the financial targets for 2013 will be maintained.
Philips does not escape the consequences of the dire economic conditions in Europe and the United States and made a profit of 162 million euro (-11%). Sales of the consumer department grew by 10%, if the divested parts are not taken into account.
The badly performing construction industry has caused the lighting division to stay stable on a comparable basis. The division Healthcare saw its income drop by one percent, because of a lower number of orders from the US.
Cost savings plan on course
Total sales had a modest decline from 5.31 billion euro to 5.26 billion euro. The company result for one-time expenses was 421 million euro, compared to 322 million euro in the first quarter of 2012. Most analysts were expecting a higher company result.
Philips also stated that the year is making a slow start, not in the least because of current situation on the market, which is anything but encouraging. CEO Frans van Houten said that the cost savings plan will be followed.