AMSTERDAM: Dutch health technology company Philips on Wednesday said it expected fourth-quarter core profit to drop around 40% to about 650 million euros ($739.25 million), hit by a global shortage of electronic components and the fallout of a massive recall of ventilators.
Comparable sales fell 10% on a yearly basis to 4.9 billion euros, Philips said in its profit warning, due to the shortage of parts, a lack of freight capacity and customers postponing their orders.
Sales were around 350 million euros lower than Philips had expected, taking comparable sales over 2021 down 1% - while the company had guided for a small increase.
The supply-chain problems added to the worries over the recall of ventilators, for which Philips said it had taken a new provision of 225 million euros, as more devices needed to be repaired than previously expected.
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Philips last year set aside 500 million euros for the operation, as it estimated it would replace up to four million ventilators and respiratory devices worldwide because of a polyurethane foam part that might degrade and become toxic.
Philips shares have lost around a third of their value since the company announced the recall in April last year.
The company will publish full quarterly and yearly results on Jan. 24.
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