Philips sales jump, bounces back from respirator recall

Philips sales jump, bounces back from respirator recall

Philips said it sales to grow in the mid-single-digits for the rest of the year
Philips said it sales to grow in the mid-single-digits for the rest of the year. Photo: LEX VAN LIESHOUT / ANP/AFP/File
Source: AFP

PAY ATTENTION: Have you recorded a funny video or filmed the moment of fame, cool dance, or something bizarre? Inbox your personal video on our Facebook page!

Dutch medical tech firm Philips posted a nine percent jump in second-quarter sales and a return to profit on Monday as it bounces back from a global recall of sleep respirators.

The Amsterdam-based company said sales rose to 4.5 billion euros ($4.9 billion).

It reported a net profit of 74 million euros following a loss of 20 million euros over the same period last year.

"I am pleased with our improved operational performance across all segments and geographies in the quarter," Philips chief executive Roy Jakobs said.

The medical device maker in 2021 announced a major recall of its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.

Users were said to be at risk of inhaling or swallowing pieces of toxic soundproofing foam that could cause irritation or headaches.

Read also

Uncertain outlook weighs on American Airlines shares despite blowout Q2

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Philips also mentioned a "potential" cancer risk in the long term.

But it announced in May that independent tests showed the sleep respirators at the centre of the massive recall were "unlikely" to harm patients.

The replacement of suspected faulty devices has now been almost completed, with "the vast majority" of the sleep devices back with patients and home care providers, Jakobs said.

"We are fully focused on the remediation of the affected ventilators," he said.

The recall hit the 132-year-old company hard and by January it announced it was slashing 10,000 jobs out of a total workforce of just under 80,000 employees around the globe.

To date Philips has cut 6,600 jobs out of the planned total set for 2025, the company said.

Philips has faced a US Department of Justice probe over the respirator issue and was negotiating with US authorities over a financial settlement.

Read also

Netflix adds 6 mn subscribers after password crackdown

It is also a defendant in several class action lawsuits in the United States and other litigation elsewhere.

While "uncertainties remain", Philips said it expected sales to grow in the mid-single-digits for the rest of the year.

The outlook, however, "excludes the impact" of ongoing litigation and the US investigation, it said.

Philips however seemed unable to temper investor concern over new orders, which declined by eight percent year-on-year.

The firm blamed lower figures on a high order intake last year and loss of orders from Russia in the wake of its full-scale invasion of Ukraine.

Its share price fell by around 4.5 percent in lunchtime trade on the Amsterdam stock exchange's blue chip AEX index, trading at around 19.8 euros a share.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.