Dutch electronics giant Philips has today posted a 27% drop in first quarter profits, hit partly by the costs of restructuring and some acquisitions as it evolves its portfolio.
Philips' net income fell in the first three months to €94m compared to €128m over the same time 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, 2% down on the figure of €4.03m in 2017.
But the company stressed that was a comparable growth of 5% 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 €64m in the first quarter of 2018, compared to just €24m the same last year.
The 2017 first quarter profits also got a boost from a €59m gain from selling some property.
The group, which sold its first light bulb a few years after it was founded in 1891, moved to list its Philips Lighting division in mid-2016 which joined the Amsterdam stock exchange, the top-tier AEX, in March.
Philips is a global multinational with more than 104,000 employees and income streams in over 150 countries.
