–31% since Feb. 19
Philips said on Sunday that it will double production of hospital ventilators within the next eight weeks and achieve a four-fold increase by the third quarter of 2020. The company said it is mobilizing its global supplier network to step up support and production.
Philips has a global network of certified materials and component suppliers and final assembly sites in North America, Europe and Asia.
Its efforts include hiring more manufacturing employees and shifting employees to increase production; adding manufacturing lines and increasing shifts to operate 24/7, re-purposing similar product lines to address the increased demand, and engaging with third-party contract manufacturers.
The Amsterdam-based company also said it is calling on governments to help it gain access to critical materials and components by not imposing restrictions such as export controls and tariffs, and to help accelerate logistics and provide exemptions from lockdown measures for critical suppliers.
“We are actively engaging with the medical technology industry, governments, the World Health Organization and other health authorities to safeguard the production expansion of materials, components and final products, as well as their shipment between countries,” Philips CEO Frans van Houten said in a news release. “We are calling on all these parties to help us in our endeavor to save lives by accelerating deliveries. We believe in fair allocation of scarce medical equipment to those that need it the most, while we are ramping up to supply other regions in the coming months.”
As for its business performance, Philips said the outbreak has hurt demand for its consumer products and is affecting its global supply chains.
“While this is expected to have a negative impact on the financial performance of Philips in the first half of 2020, the company cannot quantify the magnitude and duration of such impact at this time given the continued fluidity of the situation,” the company said. “Philips continues to monitor and assess its business operations daily, and will provide an update as appropriate.”
Down 31% since the market’s Feb. 19 peak, PHG shares were up 1.58% to $33.39 apiece at the close of trading today. —NC