Philips reports declines Company also says it’s in talks with DOJ on proposed consent decree
By HME News Staff
Updated 9:21 AM CDT, Mon July 25, 2022
AMSTERDAM – Comparable sales for the Connected Care business at Philips decreased 13% in the second quarter of 2022, mainly due to the consequences of a major recall and supply chain headwinds.
The company says it is making progress on the recall, producing more than 3 million replacement devices and repair kits to date.
“Philips Respironics aims to further increase capacity and complete around 90% of the production and shipments to customers in 2022,” the company stated in a press release announcing its latest financial results.
Additionally, Philips has begun discussions with the U.S. Department of Justice, acting on behalf of the U.S. Food and Drug Administration, on the terms of a proposed consent decree to resolve identified issues.
The company again highlighted the latest results of a comprehensive testing and research program on the PE-PUR foam in certain CPAP, BiPAP and mechanical ventilator devices that show very low prevalence of visible degradation.
More broadly, Philips reported group sales were EUR 4.2 billion for the second quarter, a 7% comparable sales decline, mainly caused by supply shortages and prolonged lockdowns in China, on the back of 9% comparable sales growth. Order intake increased 1%, and income from operations was EUR 11 million vs. EUR 85 million.
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