Philips sold less medical technology in the second quarter of this year than in the first. This is evident from the quarterly figures published on Monday of the Dutch company. The negative results are mainly due to sector-wide problems: an international supply chain disrupted by corona lockdowns in China and inflation caused by the war in Ukraine. The medical technology company therefore expects less turnover for the entire year than before.
The affair surrounding the potentially dangerous sleep apnea devices, of which Philips sold millions worldwide, continues to haunt the company. The machines incorporate sound-absorbing foam rubber that users can partially swallow or breathe. There is also a risk that the foam rubber releases potentially dangerous chemicals.
Also read: Philips helps Jula breathe, but what is she getting into her lungs?
Philips has announced that it is in talks with the American Public Prosecution Service about a settlement to settle the affair there. That could hurt the company even more. Last year, Philips began a major recall of sleep apnea devices. The company has now produced three of the five and a half million replacement sleep apnea devices or repair kits.
Despite the problems in the supply chain, CEO Frans van Houten expects Philips to start growing again from the third quarter — despite the ongoing macroeconomic challenges. The technology group has taken various measures to make the supply chain less susceptible to the vagaries of the market. The report does not explain what this actually means. The share of Philips dropped below twenty euros on Monday morning: exactly twice as low as a year ago.