Shares in Philips took a hammering Tuesday morning after the Dutch electronics conglomerate reported a drop in its first-quarter results.
The company's share price was down 6 percent in early morning trade in Europe in spite of Philips' CEO Frans van Houten highlighting that demand on the continent was starting to pick up.
Net profit for Philips came in at 137 million euros ($189 million) for the first quarter of 2014, compared to a figure of 162 million in the first quarter of 2013. Revenues for the period came in at 5.02 billion euros.
Van Houten told CNBC Tuesday that he expected 2014 to be a "challenging year," but remained confident that the company would achieve its mid-term 2016 financial targets.