United States halts order of Philips ventilators, earnings to be hit

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Electrical equipment maker Philips on Monday said the U.S. Department of Health had cancelled the bulk of an order for 43,000 hospital ventilators, leading it to cut its 2020 earnings outlook.

FILE PHOTO: The Philips headquarters is pictured in Barueri, on the outskirts of Sao Paulo, Brazil, July 19, 2019. REUTERS/Amanda Perobelli

The Dutch company, which makes products ranging from electrical toothbrushes to hospital equipment, said it will now deliver just 12,300 hospital ventilators by the end of the year. The company said it had been informed by the U.S. Department of Health and Human Services of the partial termination of the contract. Philips will not ship a remaining 30,700 ventilators, it said in a statement.

“The reduction in our ventilator deliveries to HHS will obviously impact Philips’ financial performance, but we continue to expect to return to growth and improved profitability in the second half of the year, starting in the third quarter,” Frans van Houten, Philips chief executive, said.

 

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The US is a reliable partner in any way thinkable. Great attitude for the future. New trade deals will be so much easier to make. FU!

Using the DPA was key, it guarantees companies a market so they drop everything to fulfill govt needs, without it, you have this lowlife reneging on deals. Phillips will suffer but it must do so quietly so trump doesn't punish it further

Ex x z x

Wasn't Philips that supplier that basically said to the rest of the world screw you, we made a deal with Trump thats lucrative for us and we basically don't care.. Good luck with future sales in the rest of the world. 👋

Fuck united airlines, they have been making billions off customers with secondary charges, luggage, fees,up charges, hidden costs bastards.

Trump: Phew, now we can use that money in my election campaign.

I suppose the admin has replenished stockpiles?

Ouch...another one...

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