Philips Q1 Net Profit Drops

reported a drop in its net profit for the first quarter. Philips posted a quarterly net profit of EUR99 million ($108 million), versus a year-ago profit of EUR138 million. EPS slipped to 0.11 euros from 0.15 euros. Its sales climbed 14 percent year-over-year to EUR5.34 billion, compared to EUR4.69 billion. Healthcare sales climbed 15 percent to 2.26 billion euros in the quarter, while consumer lifestyle sales gained 17.1 percent to 1.19 billion euros. Lighting sales climbed 9.4 percent to 1.72 billion euros. Net income from continuing operations dropped to 64 million euros, compared to 96 million euros, a year ago. EBITA fell to 230 million euros versus 253 million euros. Comparable sales rose 2.1 percent. Gross margin shrank 90 basis points to 39.6 percent compared to 40.5 percent. Philips shares dropped 3.39 percent to $29.06 in pre-market trading.