Philips shares jump on recall provision and profit improvement

shares jumped 13% on Monday as the Dutch health technology company reported much better than expected first-quarter results and said it had set aside 575 million euros related to lawsuits over its recall of respiratory devices.of millions of respirators used to treat sleep apnoea since it was announced in June 2021 over worries that foam used in the machines could become toxic.

"We are happy we can solve this case," CEO Roy Jakobs said about the provision for the settlement Philips expects to reach in the current quarter.Analysts, however, warned that much remained unclear regarding the total costs of the recall. "The more significant medical litigation risk and the consent decree impact remain," ING analysts said in a note.

Philips said the outcomes of negotiations with the FDA and the other lawsuits were still too uncertain to make a provision.

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Philips makes $631 mln provision for recall litigation costsDutch health technology company Philips on Monday said it had set aside 575 million euros ($631 million) for possible litigation costs related to its global recall of respiratory machines.
Source: Reuters - 🏆 2. / 97 Read more »