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July 25, 2023: On Monday, Dutch health technology firm Philips increased its full-year targets after posting a bigger-than-anticipated jump in second-quarter core earnings gratitude to better supply chains, a strong demand book, and efficiency measures.
The Amsterdam-based company, a retired industrial conglomerate that now focuses on medical technology, reported adjusted earnings before interest, taxes, and amortization of 453 million euros for the April-June period, beyond the 394 million euros seen in a company-compiled poll.
For the full year, it anticipates a mid-single-digit comparable sales growth versus its previous guidance of low-single-digit growth.
Its adjusted EBITA margin is now at the upper end of its previously forecasted high-single-digit range.
Philips, which is facing lawsuits over its recall of respiratory devices, said it had produced approximately 99% of the new replacement respiratory devices and restoration kits required for the remediation of the registered affected devices.
The group has been wrestling with the fallout of a global recall of millions of respirators used to treat sleep apnoea since it was announced in June 2021.
“Completing the Philips Respironics field action remains our highest priority. The vast plurality of the sleep therapy devices are now with patients and home care providers, and we are fully focused on the remediation of the affected ventilators,” Chief Executive Roy Jakobs said in a statement.
The Amsterdam-based group stated that litigation and investigation by the Department of Justice of the U.S. related to the Respironics field action and discussions on a proposed consent decree were ongoing.
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