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The Dutch tech company has said it will take cost-cutting measures and raise prices to offset inflationary headwinds. However, the strong customer demand and the high order backlog as well as the sales development in the reporting period support the targets set in January, according to Philips.
Philips reported a net loss of 151 million euros for the quarter, compared to a profit of 39 million euros a year earlier. Sales rose from 3.83 billion euros to 3.92 billion euros, exceeding analysts’ expectations, which according to the company had expected 3.75 billion euros. On a like-for-like basis, sales fell 4 percent, while market consensus published by Philips had forecast a 7.8 percent decline.
US ventilator recall
Power supply problems have prompted Philips to recall ventilators. As the Dutch company announced, its subsidiary Philips Respironics is voluntarily returning devices of the types V60/V60 Plus and V680. The US Food and Drug Administration classified the recall as “Class I”, the highest priority.
According to Philips, there is a potential problem with a circuit that controls the power supply to the devices. This could cause the devices to stop working, possibly without triggering an alarm.
According to the company, it has made a provision in connection with the recall.
The Philips share at the EURONEXT in Amsterdam temporarily fell by 10.66 percent to 25.14 euros.
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