Philips lowers outlook due to recall, parts shortages bite

The logo of the Dutch tech company Philips can be seen at the company’s headquarters in Amsterdam, the Netherlands on January 29, 2019. REUTERS / Eva Plevier

AMSTERDAM, Oct. 18 (Reuters) – Dutch healthcare technology company Philips (PHG.AS) lowered its outlook for sales and profit growth in 2021 on Monday, amid a massive respirator recall and shortage world of electronic components reached its third quarter. earnings.

Comparable sales during the July-September period fell 7.6% from a year ago as Philips began recalling up to four million of its respirators and ventilators as parts could collapse. degrade and become toxic. Read more

Revenues were also lower due to global supply chain issues, as a shortage of electronic components and parts meant it took longer than expected for Philips to turn orders into sales.

“Supply chain volatility has intensified globally,” said Managing Director Frans van Houten. “We expect this headwind to continue into the fourth quarter.”

As a result, the Amsterdam-based company now expects “low single-digit” same-store sales growth for this year, which is the lower end of its previous forecast, with only a “moderate” improvement in its margin. beneficiary.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITA) fell 25% in the third quarter to 512 million euros ($ 592.7 million), while analysts in a survey compiled by the companies had forecast in average a decrease to 490 million euros.

($ 1 = € 0.8638)

Reporting by Bart Meijer; Editing by Himani Sarkar and Kim Coghill

Our standards: Thomson Reuters Trust Principles.

Comments are closed.