Philips hit by drop in TV sales

Chief financial officer on the company's profits

Consumer electronics firm Philips Electronics has reported a slowdown in first quarter profits, after being hit by a slump in TV sales.

Profits fell 28% to 219m euros (£175m), in the first three months of this year, from 875m euros a year earlier.

Overall sales rose by 1%, helped by a rise in healthcare and lighting goods, but North American sales fell 9%.

The firm recently said it would stop producing TVs for North America, after seeing sharp losses in the region.

Emerging markets

"Consumer lifestyle was the big negative of the numbers," said asset manager Rene Bastianenen of Eureeffect.

Meanwhile, sales in the healthcare division rose 5% year-on-year, while lighting sales were up 16% for the same period.

Speaking to the BBC, chief financial officer Pierre-Jean Sivignon said that within the lighting segment, sales of more efficient goods using new technology had done especially well.

In light of the recent US slowdown, Mr Sivignon said: "All in all, what is important is the resilience of emerging markets," adding that the firm had a diverse portfolio catering to both the consumer and specialist professional markets.

But the result sent shares in the firm down 3% in early trade.

Before the weekend, the firm saw its shares slip 1.9% after a surprise drop in quarterly profits at competitor General Electric, which added to concerns over an economic slowdown.