Electronics giant Philips Monday posted a 63-percent slump in first quarter profits for 2016, blaming the fall on a high tax bill incurred for a major company restructuring. It also confirmed that its lighting branch, which is being separated from the company's other activities, would "likely" be floated on the stock market.
A household name around the world for home appliances, Philips said it had earned 37 million euros in net income for the first quarter, compared with 100 million euros in the same period in 2015.
The Amsterdam-based company has re-oriented its range of activities in recent years to focus more on advanced lighting technology and on medical technology where margins are strong and less vulnerable to competition from emerging markets. The restructuring of the company, which employs some 106,000 people around the world, is expected to be completed this year. Philips said Monday overall sales rose 5 percent to 5.5 billion euros.