Philips managed to maintain its recovery in the last quarter. The company, which operates mainly in the medical technology sector, achieved sales of 4.5 billion euros in the third quarter, an 11 percent increase compared to the previous year. Profits also more than doubled.
According to Philips boss Jakobs, the planned cost savings are happening as planned. Of the planned 10,000 people, 7,500 have now been released or resettled elsewhere. Research and innovation costs are also reduced. According to the company’s report, 258 million euros were saved in the last three months as a result.
However, the order backlog has shrunk; 9 percent fewer new orders were received compared to the same quarter of the previous year. According to Philips, this is due to customer uncertainty due to decreased orders from China and longer delivery times.
apnea issue
According to Philips, the recall of apnea devices remains a top priority. The company is in a legal dispute over this issue: Device users are said to have suffered health damage due to loose pieces of foam. The company still faces lengthy legal proceedings in America and Europe involving claims potentially worth billions of dollars.
Based on its previous research, Philips concluded that the devices did not cause any demonstrable harm to health. The American regulatory authority, the FDA, believes that Philips has not yet conducted its research thoroughly enough.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
