Philips Electronics’ TV business is currently struggling with significant profit losses, as the company unveiled on Monday. According to the Eindhoven, Netherlands-based company, first-quarter earnings before interest, tax and amortization (EBITA) dropped 72% to €265 million ($419 million), while the sale went up 1 percent.

“We look back on a quarter with essentially good financial performance across most of our businesses. Unfortunately, our results are clouded, more than we like, by the adverse situation in our TV business, significantly lower incidental license income and some acquisition-related charges impacting EBITA,” said Gerard Kleisterlee, Philips Electronics Chief Executive in a statement.

What the company’s TV business is currently suffering from is a very tough competition from low-cost rivals, especially on the U.S. market. The company’s shares have also dropped 18 percent since the beginning of the year, and went down 2.7% in Amsterdam trading after the quarterly results were unveiled, the Wall Street Journal reports.

“In the short term, the TV business continues to be more negative than expected, but Philips has already announced measures for this business, which we expect to positively impact results from the end of 2008,” said SNS Securities analysts. “The three core businesses – domestic appliances and personal care, lighting, and health care – which contribute 95% of the total operating value – showed a good performance.”

For 2010, Philips Electronics said it was hoping to double EBITA per share and it expects margins for the same year to grow between 1% and 11%, with annual sales growth of at least 6%.

Philips Electronics announced last week that it was giving up making TVs for the United States and Canada, after losing too much money. The company also announced a licensing deal with Japanese company Funai Electric.