Health technology company Philips reported sales of €3.9 billion for the first quarter of 2018 with comparable sales growth of 5%.
Operating profit, EBITA, for the quarter was €263 million, versus €304 million in Q1 2017, which includes the results of Lighting and the combined Lumileds and Automotive businesses, which have subsequently been deconsolidated. Net income from continuing operations only was €94 million, which includes higher restructuring and acquisition related charges and bond redemption costs of €52 million, compared to €128 million in Q1 2017.
Frans van Houten, CEO, said "While there is more work to be done, 2018 started well, with 10% comparable order intake growth, 5% comparable sales growth and a 130 basis point improvement in operational profitability. Good traction of new products and solutions introduced last year contributed to 9% comparable sales growth in the Diagnosis & Treatment businesses. In the quarter, we continued to make good progress with our productivity programs and took action to further reduce our interest expenses."
Targets for the 2017 to 2020 period remain at 4 to 6% comparable sales growth and an average annual 100 basis points improvement in the adjusted EBITA margin.