Net profit slumps at electronics giant Philips as restructuring erodes gains from higher sales

MarketsAssociated Press

Royal Philips NV, the world's biggest lighting maker, says its net profit slumped 27 percent to 100 million euros ($109 million) in 2015's first quarter as higher restructuring costs wiped out gains from higher sales.

Sales rose 14 percent to 5.34 billion euros, as a strong growth from Philips so-called "Consumer Lifestyle" division (dental hygiene, kitchen appliances, hair removal tools) offset slow or falling sales from its healthcare and lighting divisions.

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Restructuring costs totaled 58 million euros.

Philips, which began life as a lighting company in 1891, last year announced an up-to 400-million-euro plan to split off its lighting business to create two separate companies.

The move is aimed at making it easier for the lighting arm, seen as a dominant seller of LED lights, to break into new markets.