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Philips shares in free fall after profit warning: delivery problems and provisions are also raging Philips in the final quarter

The global supply chain problems and the consequences of a product recall also weighed on the medical technology group Philips in the final quarter of 2021.

According to preliminary calculations, sales in the quarter of the year should come out at around 4.9 billion euros and thus around 350 million euros lower than previously forecast, the company Philips announced on Wednesday in Amsterdam. On a comparable basis, this is a decrease of around 10 percent compared to the same period in the previous year. Adjusted earnings before interest, taxes and goodwill amortization (Ebita) should reach 650 million euros. In addition, there is a special charge that, at 420 million euros, is higher than previously expected. The reason for this is, among other things, higher provisions in connection with a recall of certain ventilators from the Group.

Siemens Healthineers’ competitor had to lower its forecast for the year after a difficult third quarter, but even these goals are unlikely to be achieved now. For the year 2021, sales of 17.2 billion euros are indicated, according to the information, this corresponds to a decrease of one percent on a comparable basis. Most recently, management had promised an increase in the low single-digit percentage range.

Philips shares under pressure – profit warning undermines confidence

With a loss of ten percent, the shares of Philips stood out negatively on Wednesday in Amsterdam as a result of a weak business development in a rising overall market. It is currently 13.31 percent lower at 29.30 euros. A profit warning for the fourth quarter undermined the recovery attempts of the past few weeks. After a disappointing development last year, the share recovered somewhat in December, but has now fallen back to the lows of previous years at around EUR 30. Recently, this brand had repeatedly offered a stop.

JPMorgan analyst David Adlington spoke of a clear warning for the fourth quarter. The disappointing statements gnawed at investor confidence.

James Vane-Tempest from Jefferies’ investment house was also disappointed. Burdens from product recalls and delivery bottlenecks were expected, but not to this extent.

/ tav / mis

AMSTERDAM (dpa-AFX)

Reference-www.finanzen.at

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