Philips held back half a billion due to bad ventilator

Philips held back half a billion due to bad ventilator

really wanted PHILIPS Focus on what a traditional Dutch company can do best from a management standpoint: manufacturing medical technology products. But now the group is facing a serious setback in its core business, of all things.

The Amsterdam company said it has made millions of ventilators with noise-free foam that can break down into particles. These particles can be ingested or inhaled and are potentially toxic and carcinogenic. Philips doubled the balance sheet provision for expected costs in this regard to EUR 500 million.

For this, the company had issued a recall notification. America And a security notice for the rest of the world. In the first quarter, the provision of quality defects in the product segment for sleep and respiratory therapy with a volume of 250 million euros affected the quarterly results.

Billionaires deal with China

The recall is a setback for Philips as the company focuses on healthcare products. The company recently sold its home appliance business such as vacuum cleaners and coffee machines to China’s Hillhouse Capital Investment Fund for about €3.7 billion.

Sleep apnea is a sleep disorder in which breathing stops. Philips has a number of ventilators aimed at improving sleep patterns, many of which are known as the DreamStation family of products. To the best of its own knowledge, the company is working with supervisory authorities on a comprehensive repair and replacement program for the affected equipment.

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