It is also clear that the company has been hit hard by the cancellation of a large order by the American government. It would purchase 43,000 respirators from Philips until the end of the year, but at the end of August it became clear that a large part of the delivery was interrupted.
According to Van Houten, this happened simply because the US had ordered many more devices than the country ultimately needed. “That was very disappointing. Perhaps understandable, because America may have ordered a bit too much, which caused the stock in the country to increase considerably.”
The Americans purchase 30,000 fewer devices than planned. This leads to a decrease in the total number of orders with Philips of 18 percent, according to the quarterly figures. Excluding this order, the number of orders increased by 3 percent.
As a result, the company misses out on hundreds of millions of euros. That will not be reflected in the fourth-quarter figures, because it has already put money aside to absorb that setback.
Growth in the coming years
Although Philips has been affected by this setback and sees that the installation of some medical equipment is delayed, Van Houten expects that turnover this year will all grow “modestly”. He has also announced his expectations for the coming years. Until 2025 the company will grow by 5 to 6 percent annually, the CEO thinks.