Philips sees hit from product safety fault

THE HAGUE: Dutch firm Philips said Monday it anticipates a hit of up to 250 million euros ($302 million) from a possible safety risk in some sleep and respiratory care products, even as first quarter profits edged higher.

The company, which has diversified into healthcare and last month sold off its domestic appliance business, said net profit was 40 million euros in the three months to March 31, a 2.6-percent rise on a year earlier.

Philips had sales of 3.8 billion euros in the first quarter, up 3.6 percent from the same period last year.

“Regretfully, we have identified a quality issue in a component that is used in certain sleep and respiratory care products, and are initiating all precautionary actions to address this issue, for which we have taken a 250 million euro provision,” Philips CEO Frans van Houten said in a statement.