Amsterdam-based consumer electronics manufacturer Philips is experiencing slumps in sales as a result of the economic downturn.

Dutch electronics manufacturer Philips has reported a 17% decline in sales and a €57 million loss (£51m) in its first quarter results.

Despite the fall in profits, Philips said that there will be no new job cuts as a result of the figures. Philips had already announced the culling of 6,000 positions in 2009.

The drop in profits contrasts starkly with first quarter results in 2008, which reported the company a €294m profit. Sales were also down 17% to €5.1 billion.

Due to the economic downturn, Philips has implemented a number of cost-cutting measures, including the previously announced job losses, which the company states have been successful in the first quarter and the savings are expected to exceed €500m on an annualised basis by the end of 2009.

Philips, the world’s biggest lighting producer and Europe’s biggest consumer electronics manufacturer, noted a downturn in both of its major markets.

Gerard Kleisterlee, President and CEO of Royal Philips Electronics, said: “We remain convinced that Philips will come out of this recession as a stronger company.

“The portfolio of leading businesses we have built up is clearly not immune to the market woes we are now experiencing, but it is certainly more resilient than the portfolio we operated in the previous downturn.”