Philips 4Q Sales Hurt by Supply-Chain Issues, Customer Equipment Delays

   By Ian Walker 
 

Koninklijke Philips NV said Wednesday that sales for the last quarter of the year were below its expectations, blaming global supply-chain shortages and the postponement of customer equipment installations.

The Dutch health-technology group said group sales for the fourth quarter of 2021 are expected to be about 4.9 billion euros ($5.57 billion), around EUR350 million below the company's previous expectations. For the year, sales are now expected to fall 1% on a comparable basis to EUR17.2 billion.

Group adjusted earnings before interest taxes and amortization--one of the company's preferred metrics, which strips out exceptional and other one-off items--is expected to be EUR650 million, making EUR2.1 billion for the year.

Philips said it expects to book EUR420 million of charges for the quarter, a rise of EUR315 million from previous estimates.

Still, the company said its comparable order intake grew 4% in the fourth quarter with double-digit-growth in the diagnosis & treatment businesses.

"We are closely working with suppliers and governments to address the shortages in the healthcare supply chain and ensure they recognize the importance of prioritizing life-saving medical equipment," Chief Executive Frans van Houten said.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

January 12, 2022 01:44 ET (06:44 GMT)

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