Medical technology – problems at Philips – economy

Missing electronic components and a mass recall of ventilators have an impact on the medical technology group’s balance sheet. For the fourth quarter, the Dutch company is preparing for a slump in operating profit of around 40 percent to around 650 million euros. Philips is recalling millions of devices because foam used in them could become toxic over time. In addition to new provisions for the expanding recall campaign and global delivery bottlenecks, Philips is also suffering from insufficient freight capacities and hesitant orders from customers. As the manufacturer of health technology and household appliances also announced, quarterly sales fell on a comparable basis by ten percent to 4.9 billion euros.

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