Dutch manufacturer Philips has become the latest company to cut its annual forecast because of supply chain snags, adding to worries for investors awaiting more information on the fallout from a huge recall of faulty respiratory devices.
The “intensified” supply chain issues, including a shortage in semiconductors and disruption in the global shipping network, made it harder to deliver on orders with revenues slipping 7.6 per cent in the third quarter compared with a year earlier. That pressure is expected to continue until at least the end of the year, Philips said on Monday.
“Supply chain volatility has intensified globally, which already led to longer lead times to convert our strong order book to revenue in the third quarter, and we expect this headwind to continue in the fourth quarter,” said Frans van Houten, chief executive. He added that “uncertainty related to Covid-19” also remained.