Dutch based electronics group Philips says weakness in the flat screen TV market is mostly responsible for its 79% slump in profits since the start of the year. Income from its semiconductor division, also declined by 80%, but there were improved sales for the company’s medical technology and consumer products.

The fall to 117 million euros in net profits for the first three months of the year was mostly due losses at its flat screen TVs joint-venture with South Korea’s LG Electronics. There has been a glut of those TVs, which meant prices have had to be cut. Philips is predicting the price declines will slow this quarter thanks to higher demand. The company been trying to reduce its dependence on microchips and flat screens by expanding in medical systems, small domestic appliances and lighting. This is the latest in a serious of disappointing announcements from technology companies. Philips’ figures echoed those from its arch rival, Samsung. The Korean company’s operating profit from its liquid crystal display flat screen TV unit plunged 97%.

Copyright © 2012 euronews