By Anthony O. Goriainoff
Royal Philips NV said Wednesday that its performance in the third quarter was hurt by stronger-than-anticipated supply-chain challenges, and that as a result it expects a fall of around 5% in like-for-like sales.
The Dutch health-technology company said that it expects to record a 1.3 billion euro ($1.26 billion) impairment charge in the period. The company said that this is an impairment of goodwill of Philips Respironics, its sleep and respiratory care business, and that it is due to revisions to the business’s financial forecast.
Royal Philips said group sales for the quarter are expected to be around EUR4.3 billion. It said that as a result of lower sales it expects adjusted earnings before interest, taxes and amortization–a metric that strips out exceptional and other one-off items–to be around EUR210 million.
The company said that although it expects a better second half, it sees supply-chain disruptions continuing and a worsening of the macro environment.
“Philips now expects a mid-single-digit comparable sales decline for the fourth quarter of 2022,” the company said.
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