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. 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.