Royal Philips Dragged Down by Ever-Expanding Ventilator Recall
Royal Philips (NYSE: PHG) is promising a turnaround from its bottom-line woes, which began with one of the largest medical devices recalls in recent history. The recall is a high-profile problem that has affected millions of patients in the U.S. and other countries for almost two years, and those effects have directly translated to the company's significant net loss.
Two major factors explain the softness in Royal Philips' 2022 results: the ever-expanding recall of its subsidiary Philips Respironics' ventilators and sleep apnea masks, and continuing supply chain problems in the wake of the COVID-19 pandemic.
There may be little the Netherlands-based company can do about component shortages, but the high-profile issues it faces due to defective sound abatement (noise reduction) foam in its breathing devices have no clear end.
Source Fool.com
