Monday 15 August 2022

Recall of ventilators triggers 14% slump in Philips share price

Electrical firm Philips saw its share price drop by 14% on Wednesday morning after it said the recall of machines to treat sleep apnea would cost it €225 million.

The Eindhoven-based conglomerate is having to replace more than five million ventilators worldwide after it emerged that they can release harmful chemicals in high heat or humidity, or during cleaning.

Part of the money has been set aside to settle expected lawsuits from users, particularly in the United States.

The company has produced 750,000 replacement machines after the design was approved in September, one-third of which have been distributed.

Philips has revised its expected turnover for the last quarter of 2021 downwards by €308 million to €4.9 billion, while its income for the full year is expected to be €17.9 billion, slightly less than 2020.

Thank you for donating to DutchNews.nl

The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.

DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.