Philips report first quarter profits

The Dutch company is the largest electronics manufacturer in Europe and believes that the surge in profits can be attributed in part to significant sales in their healthcare division.

‘We have stepped up our investments in innovation,’ said Philips spokesperson Steve Klink. ‘We have continually renewed our product portfolio to ensure we have continued to grow faster than the market.’

While Philips spent €53m less on R&D for this quarter in comparison to the same quarter last year, Klink maintains that the company is on course to spend equal to or more than the total overall annual R&D spend in 2011.

According to Klink, R&D spend across the whole Philips Group in 2011 was €1.61bn, which accounts for 7-8 per cent of the company’s total sales, at €22.6bn.

While overall sales rose nearly seven per cent to €5.7bn in the first quarter of this year, the company witnessed a decline in their entertainment products, explaining an overall loss across the lifestyle division.