The financial report showed that Philips' first-quarter revenue fell 0.9% year-on-year to 5.26 billion euros, lower than analysts' forecast of 5.48 billion euros. In the first quarter, medical equipment business revenue decreased by 3.7% year-on-year, while lighting business revenue decreased by 2% year-on-year. It is reported that the medical equipment business and lighting business account for 80% of Philips' total revenue.
He Zaihua, a senior researcher at China Investment Consulting, said that Philips' first-quarter results in 2013 fell to a certain extent, which was related to the sluggish global economic environment and market demand. In particular, the euro zone has not yet emerged from the quagmire of the crisis, and the US economic recovery is still slow and long, which means that Philips' performance in the markets of Europe and the United States is still lacking a solid foundation. However, the Philips market is more competitive, and the probability of a sharp and sustained decline in future performance is small.
In response to weak market demand, Philips CEO Wan Hao is still working to cut product costs. Marriott said last month that in addition to the planned savings of 1.1 billion euros by 2014 and layoffs of 6,700 people, Philips is likely to save an additional â‚¬1 billion in costs between 2014 and 2016.
In an interview with reporters, Marriott said: "At present, the global market is not very stable." He pointed out that because the United States is undergoing medical reform, American hospitals are reducing spending. The economic downturn has led construction companies to reduce orders, so the company's lighting business has been greatly affected.
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