Recall Costs: Phillips Costs Millions Millions to Recall Breathing Devices in US – Philips Stock Surrender | News

According to the Dutch Medical Technology Institute, it has detected health risks associated with the sound-absorbing foam component in some devices. Most of the affected devices belong to the first generation Dreamstation product family for sleep and breathing therapy.

Koningklige Phillips NV has issued a recall to the United States and a security notice to other parts of the world in consultation with regulatory authorities.

The sound absorbing foam will be replaced with a new material and the first generation Dreamstation product families will be replaced with a different foam.

As a result, Philips expects costs to increase by $ 250 million, above the $ 250 million allocation it announced in its first quarter results.

Fixed earnings before the interest, tax, depreciation and debt margin forecast for 2021 remain unchanged because, according to Phillips, sales of sleeping and breathing apparatus are offset by strength in other segments.

In Amsterdam, Philips titles are temporarily trading 0.53 percent lower at .3 46.38.

Amsterdam (Dow Jones)

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