Philips Lowers Sales Outlook, Shares Slump

Dutch healthcare giant Philips has lowered its sales outlook for the year, citing ongoing supply chain disruptions and the impact of the war in Ukraine.

The company's shares plunged by more than 10% in early trading on Tuesday, after it announced that it now expects sales to grow by just 3-4% in 2023, compared with its previous forecast of 4-6%.

Philips blamed the downgrade on a number of factors, including the ongoing global chip shortage, which has been disrupting production of its medical equipment. The company also said that the war in Ukraine has had a negative impact on its business in Russia and other Eastern European countries.

The news comes as a blow to Philips, which has been struggling to recover from a series of product recalls and quality issues in recent years. The company's chief executive officer, Frans van Houten, said that he was "disappointed" with the downgrade, but that he was confident that Philips would be able to overcome the challenges it faces.

"We are taking decisive actions to address the supply chain disruptions and the impact of the war in Ukraine," van Houten said. "We are also continuing to invest in our innovation pipeline and our digital transformation. I am confident that Philips will emerge from this period stronger than ever."

Analysts were less optimistic, however. They said that the downgrade raised concerns about Philips' ability to meet its long-term growth targets. "This is a major setback for Philips," said one analyst. "The company is facing a number of challenges, and it is unclear how it will be able to overcome them."

The downgrade is likely to put pressure on van Houten, who has been under fire from investors for his handling of the company's recent problems. Van Houten has said that he is committed to turning Philips around, but he faces a difficult task. The company is facing a number of challenges, and it is unclear how it will be able to overcome them.