Philips has stopped selling ventilators after the group sold between 3 and 4 million units last month recalled. Users of the devices could inhale harmful gases and foam particles.
The manufacturer has completely shut down sales since the recall. It is expected to take another year before the issues with the devices are resolved and sales can resume. That says CEO Frans van Houten in conversation with the NOS.
Due to the sales freeze in mid-June, sales in the second quarter fell between 10 and 20 percent compared to the same period a year ago. The company previously set aside half a billion euros for the recovery operation.
Devices still usable for the time being
Philips is preparing to replace and repair the devices. The regulators in the relevant countries must first give permission for such adjustments to medical equipment.
For this, the countries in which the machines are sold look to the US, where the Philips factory is located. The authorities there have not yet approved the modifications, so the replacement and repair has not yet started.
Earlier this month, the Health and Youth Care Inspectorate announced that people will be using Philips devices for the time being can continue to use as long as they cannot be repaired or replaced. As far as is known, this is not harmful in the short term, but more research is needed to rule out long-term damage.
Chiptekorten
Philips also announced its results for the second quarter of this year. Turnover grew by 9 percent to 4.2 billion euros. Net profit fell from 210 million euros to 153 million euros. According to Van Houten, this decrease is entirely attributable to the problems with the ventilators.
Like many other manufacturers of electronic devices and, for example, cars, Philips is struggling with the worldwide shortage of computer chips. Previously, the company was able to reminds the defibrillator produce.
Meanwhile, more of the so-called AEDs are coming out of the factory, but production is not yet at the old level.
Philips can still supply the desired number of other devices. This can be achieved by redesigning parts yourself, or by obtaining replacement parts.
As a result, CEO Van Houten does not see any problems at the moment and in the next few months. There is, however, “some work to do” for the last quarter of this year, to prevent production from slowing down or coming to a standstill. This means that there are not yet enough chips for that period.
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