Philips sees sales fall $400M below expectations amid global supply chain pressures
Royal Philips saw its quarterly sales fall about $400 million (USD) below expectations as the imaging giant grappled with global supply chain issues, leaders said Wednesday.
All told, the Amsterdam-based company recorded $5.6 billion in sales for the three months ending Dec. 31. Philips sustained a 10% sales decline when compared to the same period the previous year, citing shortages in electronic components, freight capacity concerns and a ventilator recall.
However, bright spots included “robust” order intake with 4% growth, driven by double-digit gains in its Diagnosis & Treatment business line.
“We continue to see good demand for our innovative products and solutions, resulting in an all-time high order book,” CEO Frans van Houten said Jan. 12. “However, we faced significantly intensified global supply chain issues across our businesses, in addition to customer postponement of equipment installations in hospitals.”
Van Houten said the firm is working with suppliers and local governments to address any shortages in its supply chain. Philips estimated its adjusted earnings for the quarter at nearly $744 million or 13% of sales, which was impacted by higher supply costs. Read more about its results in this earnings call transcript here.