Which means to me that Philips, and Europe, are going to be all right.
Philips had most of the usual excuses in its earnings release, such as China, Russia, and the strong euro, and it warned that the outlook in the near term is hazy. But the company managed to earn 314 million euros before interest, taxes, depreciation and amortization, and it's moving ahead with its restructuring.
For the quarter Philips reported revenue of 5.02 billion euros, down 4.5% from 5.26 billion euros in the year-ago period, with net income of 138 million euros, down from the 161 million euros earned in the first quarter of 2013.
That's not terrible given that the euro has strengthened 3 cents against the dollar since early February and the whole eurozone has been made increasingly nervous due to the Ukraine crisis, which impacts key Philips markets.
Philips will get by.
As part of its ongoing restructuring, Philips is selling its WOOX Innovations audio unit, which operates out of Hong Kong, to Gibson Brands, best known for its musical instruments. The price is $135 million.