Philips predicts slow first half of year

DUTCH electronics giant Philips has forecast “slow” growth during the first half of the year because of the weak European economy and a tough outlook for US healthcare spending.

Profits at the group fell to €162 million (£138m) for the first quarter, down from €183m a year ago, despite a 38 per cent jump in energy-efficient LED lighting sales.

Chief executive Frans van Houten said the prospects for healthcare were particularly tough in the US, where the sector is nervously waiting the implementation of Barack Obama’s reforms.

He added: “We reiterate our view of a slow first half to 2013.”