Dutch consumer electronics and health-care firm, Philips reported first-quarter earnings that beat market expectations, but the company warned about weakness in the first half of the year, particularly in the U.S. and Europe.
CEO Frans van Houten told CNBC that health-care reforms in the U.S. had made hospital CEOs cautious about spending money, hurting U.S. sales.
He also said the weakness of the Japanese yen was a headwind, but the company was sticking to its mid-term targets.
Van Houten said he sees double-digit growth in China and that Philips was producing more local products for that market.
The company reported net profit of 162 million euros ($212 million), better than the 153 million euros expected by analysts. However, sales missed estimates, coming in at 5.258 billion euros against expectations of 5.407 billion euros.
—Reuters contributed to this report.