Philips made a hefty loss of EUR 824 million in the first quarter of 2024. That loss comes as the healthcare technology company reached a settlement in the affair surrounding the company’s sleep apnoea devices. That settlement cost the company $1.1 billion, or €982 million.
In reaching the settlement, Philips does not mean to say it is actually liable or at any fault due to the accidents caused by the sleep apnea machines.
Incidentally, the case also contained some good news for Philips. The company was insured against the liability claims and reached a settlement with the insurers in which the company will be paid 540 million euros. That money will probably be put on the balance sheet in the second quarter.
That is not the end of the matter in the sleep apnea case, by the way, as there are other lawsuits pending against Philips, including a US Department of Justice investigation.
China
Despite a decline in sales in China, Philips managed 2.4 per cent growth. Due to anti-corruption measures, demand in the Chinese market is currently lower than before. On the other hand, a subsidy programme from the Chinese state to replace outdated medical equipment inspires confidence for the future, Philips says.
For Eindhoven news:Shanthi Ramani
Source: Studio040
