Dutch health technology company Philips has reported a rise in first quarter earnings, but its sales increased by less than expected.
The company - which has recently focused on health technology after selling its consumer electronics and lighting divisions - said core earnings rose 6% to €364m (£314m).
However, falling demand for hospital equipment in Europe meant sales grew by just 2%.
Despite this, Philips said it still expected to achieve sales growth of 4-6% a year until 2020.
"We continue to expect our performance momentum to improve over the course of the year," said chief executive Frans van Houten.