Phillips expects profit to fall by $1.3 billion during the period.

AMSTERDAM, Oct 12 (Reuters) – Dutch health technology company Philips ( PHG.AS ) on Wednesday said its third-quarter core profit would fall by around 60% and hit a charge of 1.3 billion euros ($1.26 billion). The sleep and respiratory care business.

On a business update, Phillips said comparable sales fell around 5% in the third quarter as supply chain issues persisted more than the company expected.

This is expected to push adjusted earnings before interest, taxes and charges (EBITA) to 210 million euros, or about 5 percent of sales, Phillips said.

Adjusted EBITDA in the third quarter of 2021 was 512 million euros.

The disruption in the sleep care business is due to the US Food and Drug Administration’s consent decree to resolve problems that have led to the worldwide recall of ventilators, which has reduced Philips’ market value by 27 billion euros. Last 15 months. Read more Read more .

Company spokesman Steve Klink said the delay was a “best estimate” of the potential consequences of the FDA’s actions on the value of the business, adding that talks with the regulator were still ongoing.

Phillips said supply chain issues and a slowdown in economic growth around the world will lead to a “mid-single-digit” comparable sales decline in the fourth quarter, with an adjusted EBITDA margin in the “high-single-to-double-digit” range.

Phillips will publish its full third quarter results on October 24.

($1 = 1.0298 EUR)

Reporting by Bart Meijer; Editing by Kim Coghill and Uttaresh.V

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