North American Philips Earnings Slump
NEW YORK (AP) _ Electronics and lighting producer North American Philips Corp. on Thursday reported a 48 percent earnings drop in the first quarter to $14.1 million, 49 cents a share, from $27.7 million, 96 cents a share.
Sales were $1.03 billion, up from $1.02 billion.
First quarter earnings a year ago were boosted by a one-time gain of $6 million, 21 cents a share, on the sale of the company’s bus transportation and attendant TV businesses.
Cees Bruynes, chairman and president of the company, said its latest results reflected continued softness in electronic components shipments; costs associated with the Philips brand-name introduction to the consumer lighting market and the impact of new product program costs on its medical systems business.
He said, however, that the ″intense pressure on pricing″ which had prevailed in the consumer electronics market throughout last year eased somewhat during the quarter.