Philips first-quarter core profit misses estimates on bleak sales
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Dutch health technology company Philips on Monday posted a 6% rise in first-quarter core earnings, but missed analysts' expectations on bleak sales growth. The company's core
profit came in at 364 million euros ($406.2 million), compared with 344 million euros in the previous year. Analysts polled for Reuters had expected adjusted earnings before interest, taxes
and amortization (EBITA) of 371 million euros, while comparable sales growth of 2% missed expectations of a 2.4% improvement. Speaking to CNBC's "Squawk Box Europe" Monday,
Philips CEO Frans van Houten characterized the quarter as "reasonable," highlighting 5% growth in the company's personal health business, and a "tremendous order
book." "Last year in 2018, the company recorded double-digit order growth through the year so with confidence I can say in 2019, we will see starting with the second quarter, and
certainly in the second half, a much stronger revenue development," he said. Van Houten also claimed the company would be insulated against macroeconomic downturns on the basis of its
transition into a health care company, and said he was "very confident" about the company's outlook for growth in emerging markets.