Philips sees Q4 earning dipping 40% due to part shortage, ventilator recall

Dutch health technology company Philips on Wednesday said it expected fourth-quarter core profit to drop around 40% to about 650 million euros ($739.25 million), hit by a global shortage of electronic components and the fallout of a massive recall of ventilators.

Comparable sales fell 10% on a yearly basis to 4.9 billion euros, Philips said in its profit warning, due to the shortage of parts, a lack of freight capacity and customers postponing their orders.

Sales were around 350 million euros lower than Philips had expected, taking comparable sales over 2021 down 1% - while the company had guided for a small