Philips NV on Tuesday posted a 28% fall in first-quarter net profit, hurt by costs related to the separation of its lighting activities, even as it recorded a rise in comparable sales for the first time in five quarters.
The Dutch electronics giant said net profit dropped to EUR99 million ($108 million) in the first three months of 2015, compared with EUR138 million in the same period a year earlier, weighed down by restructuring costs.
Sales came in at EUR5.34 billion for the quarter, up 14% from EUR4.69 billion in the prior-year period, largely because the value of sales was boosted by the weaker euro against other major currencies such as the U.S. dollar. Stripping out the impact from currency movements, sales rose 2%, the first increase since the fourth quarter of 2013, Philips said.
The Amsterdam-based company is planning to separate its 123-year-old lighting business to focus on selling medical-equipment and consumer lifestyle products. It plans to spin off the bulk of its lighting business through an initial public offering next year, and last month reached a deal to sell a majority stake in its lighting components and automotive-lighting operations.
The lighting arm was the only division that recorded a decline in comparable sales in the first quarter, with revenue falling 3% in the quarter. Philips blamed a faster decline in its conventional lighting business and a weak performance at its professional lighting activities in North America.