Philips 1Q profits fall 37 percent on TV woes

AMSTERDAM (AP)—Royal Philips Electronics NV, the world’s biggest lighting maker, says first quarter earnings fell due to losses at its television-making arm, and it is handing most of that business over to Hong Kong’s TPV Technology.

Philips says net profit was €137 million ($197 million), down from €200 million in the same period a year ago, as sales rose 5.6 percent to €5.26 billion.

This quarter’s figures include a €106 million operating loss at television, which is suffering under intense price competition. Under the deal announced Friday, TPV will own 70 percent of a new joint venture operating the business in most markets outside the U.S. and China.
The company said it expected “headwinds” and supply chain disruptions this year due to the disasters in Japan.