Philips' first-quarter net profit fell 28% year-on-year

According to MarketWatch, Philips (KoninklijkePhilips) net profit fell 28 in the first quarter, mainly due to the increase in expenses caused by the spin-off of its lighting business, but in the first quarter, Philips comparable sales for the first time in five quarters. The financial report shows that in the first three months of 2015, the net profit of the Dutch electronics giant was from 138 million euros to 99 million euros (about 108 million US dollars) in the same period of last year. The restructuring expenses affected the overall performance. In addition, Philips' first-quarter revenue increased by 14 to 5.34 billion euros, better than the 4.69 billion euros in the same period last year, mainly due to the weaker exchange rate of other currencies such as the euro against the US dollar to drive sales growth. Excluding the impact of exchange rate fluctuations, Philips' first-quarter revenue increased by 2% year-on-year, and sales growth for the first time since the fourth quarter of 2013. Headquartered in Amsterdam, the Netherlands, Philips is planning to spin off its 123-year-old lighting business, and in the future Philips will focus its business on medical devices and consumer electronics. Philips plans to launch the spin-off lighting business separately next year. Last month, Philips reached an agreement with the acquirer to sell a majority stake in its lighting components and automotive lighting business. In the first quarter, the lighting business became the only department in Philips that experienced sales declines, with revenues falling by 3 in the same period. Philips said that the lighting business continued to weaken mainly because the traditional lighting business is accelerating shrinking and sales of professional lighting business in North America are weak.

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