UPDATE 1-Philips Q1 core profit down 28 pct as TV biz hurts
(Adds CEO quote, details)
AMSTERDAM, April 14 (Reuters) - Philips Electronics (PHG.AS)(PHG.N) reported a 28 percent drop in core profit on Monday, below average analyst expectations, hurt by its loss-making TV business and acquisition-related charges. The shavers-to-lightbulbs group said earnings before interest, tax and amortisation (EBITA) fell to 265 million euros ($419 million) from 370 million the year before and compared with the average of 306 million in a Reuters poll of 14 analysts.
"Our results are clouded, more than we like, by the adverse situation in our TV business, significantly lower incidental license income and some acquisition-related charges," Chief Executive Gerard Kleisterlee said in a statement.
The Amsterdam-headquartered firm confirmed its target for annual comparable sales growth of at least 6 percent from 2008 to 2010 and raised its 2010 EBITA margin target to 10 to 11 percent. It had previously forecast "more than 10 percent".
Philips said it expected "some mature economies" to soften in the wake of a global credit crisis and said it would take steps to keep margins up. Its consumer lifestyle business -- which makes TVs, electric toothbrushes, music players and coffee machines -- will continue to feel margin pressure, Philips said.
Philips shares lost 1.9 percent on Friday after rival General Electric (GE.N) reported an unexpected first-quarter profit drop, with the slumping U.S. economy hurting its financial, industrial and healthcare units. (Reporting by Niclas Mika; editing by Andrew Hurst)
