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Philips Electronics (PHG) Releases Fourth-Quarter 2021 Results: Supply Chain and Pandemic Issues Impact Earnings; Stock Down Pre-Market

Monday, January 24, 2022 08:13 AM | Carl Pettit

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Philips Electronics (PHG) Releases Fourth-Quarter 2021 Results: Supply Chain and Pandemic Issues Impact Earnings; Stock Down Pre-Market

On Jan. 24, Philips Electronics (PHG) released its fourth-quarter results for 2021. Supply chain issues, as well as issues stemming from the COVID-19 pandemic, continue to have a negative impact on earnings. PHG stock was down 4.14% pre-market today.

Fourth-Quarter and Full-Year 2021 Results

According to the company, “group sales amounted to EUR 4.9 billion, with a 10% comparable sales decline.” Adjusted earnings were EUR 647 million, stacked up against EUR 995 million reported in 2020.

Full-year adjusted earnings before taxes were EUR 2.054 million “compared to EUR 2,277 million” in 2020. Group sales tallied out to EUR 17.2 billion.

CEO Comments: Supply Chain and Outlook

In an earnings release, Philips CEO Frans van Houten cited supply chain challenges as a major factor affecting sales, along with the postponement of equipment installations in hospitals related to COVID-19, and the consequences of the Respironics field action.

The company sees improved customer demand and a growing order book in the months ahead — but in the short term, Houten says the company expects “significant volatility and headwinds related to COVID-19 and supply chain challenges, despite our ongoing mitigation efforts.” The company anticipates a comparable sales decline for the start of the year, “followed by a recovery and strong second half of the year,” with 5-6% comparable sales growth excluding Sleep & Respiratory Care.

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