The Dutch technology company Philips made less profit in the past quarter than a year earlier. This is mainly due to the prolonged Chinese lockdowns and problems with the supply of parts and materials. The company has also suffered from inflation and the war between Russia and Ukraine.
Attention was also once again focused on the recall for sleep apnea devices. Philips says it has made three million replacement devices or repair kits for those machines.
In total, the company has to replace about 5.5 million sleep apnea devices. They contain insulating foam that can crumble. This can be dangerous for users if it comes into contact with certain cleaning agents.
Due to the lower turnover, Philips is also more negative about the year as a whole. The company expects sales to grow by up to 3 percent. Previously, an increase of between 3 and 5 percent was expected.
Philips CEO Frans van Houten says the company has taken steps to increase productivity and address delivery issues. “The positive impact of these actions gives me confidence that we will start growing again from the third quarter,” said Van Houten.