Philips’ profit fell by 27 percent to 100 million euros in the first quarter of this year, compared to a year earlier. This reports the NOS. (Dutch broadcast cooperation).
The group was suffering from the high value of the dollar. In addition, Philips has been investing to grow in health care.
"Because we operate in the United States, we get a higher turnover now the dollar is high. On the other hand, the costs are also higher because we have factories there as well. This causes a lower profit," a spokesman is saying.
Another reason for the profit decline are the investments in health care. Philips is strongly putting stakes in IT systems, for example to ensure that doctors quickly can obtain data from MRI scans. The group is expecting a lot of growth in that area.
Philips expects a modest growth of sales for 2015. Philips is committed to save on costs this year mainly to increase the profit margin.