Philips warns of tough times as TV sales suffer
Europe̵7;s biggest consumer electronics group warned of slowing economic growth in mature markets, after unveiling a 28 per cent drop in quarterly profits.
Philips blamed the earnings fall partly on tough competition in the TV-set market.
The Dutch group, whose products also include light-bulbs and electric toothbrushes, said it expected ̶0;some mature economies̶1; to soften in the wake of the global credit crisis.
It added that it expected to lose money on TVs this year but would return to profit in 2009 after the decision to stop making TVs for the North American market and to transfer the business to Funai Electric of Japan.
The news comes in the wake of an unexpected drop in first-quarter profits at US group General Electric.
Last week, microchip maker AMD said it would cut 10 per cent of its workforce after first-quarter sales fell more than expected.
Philips profits hit by dent in TV sales