Recall is Costing Philip Dearly

Problems with supply chains and a ventilator recall are causing problems for the medical technology company Philips. Sales and profits fell significantly – and the outlook is also clouded. The Dutch company Philips is no longer so optimistic about business this year. The company lowered its forecast today when it released its latest quarterly results. Sales growth in the low single digits and a “modest” improvement in the adjusted profit margin are now expected. This corresponds to the lower end of the range previously promised. Earnings and sales fell significantly for the third quarter, sales fell by 7.6 percent to 4.2 billion euros, and operating profit collapsed by a quarter. The company thus disappointed the experts’ expectations.

Problems with supply chains and a ventilator recall are causing problems for the medical technology company Philips. Sales and profits fell significantly – and the outlook is also clouded. The Dutch company Philips is no longer so optimistic about business this year. The company lowered its forecast today when it released its latest quarterly results. Sales growth in the low single digits and a “modest” improvement in the adjusted profit margin are now expected. This corresponds to the lower end of the range previously promised. Earnings and sales fell significantly for the third quarter, sales fell by 7.6 percent to 4.2 billion euros, and operating profit collapsed by a quarter. The company thus disappointed the experts’ expectations.

The group specializes primarily in medical technology products, particularly in the areas of cardiology, emergency medicine and health care. The company recently sold its household appliances business such as vacuum cleaners and coffee machines to the Hillhouse Capital investment fund from China for around 3.7 billion euros.