Dutch Philips logs 27 percent drop in Q1 net profit

(MENAFN) Dutch electronics giant Philips revealed an overall first quarter plunge in net profits of 27 percent, including a drop in its key future focus area of healthcare technology, The Peninsula Qatar reported.

Philips said net profit slackened to USD105 million on increased sales of USD5.87 billion during the first three months of the year compared with the first quarter of last year, the company said in a statement.

"Our investments, coupled with negative currency effects, are the main reasons for the low profitability in healthcare in the first quarter," said Philips chairman, adding he was "surprised" by market reaction.

The company, which employs 107,000 people worldwide, has also set targets of 11-12 percent growth in adjusted earnings before interest, taxes and amortization by 2016.