AMSTERDAM (Reuters) – Philips said on Monday it had written off a provision of 575 million euros to cover possible legal costs related to its global recall of ventilators.
The Dutch company has been in turmoil since a recall of millions of respiratory aid devices and ventilators due to a risk of degradation and toxicity of a foam component which could become carcinogenic.
Chief executive Roy Jakobs said the provision was made in anticipation of a resolution of the US economic loss class action lawsuit. It marks an “important step in the handling of the dispute”, he added.
Philips is still working on a settlement with the Food and Drug Administration (FDA), the US health authority, and is under investigation by the US Department of Justice.
The company said the results of these events are still too uncertain to trigger a provision.
Philips also announced results well above forecasts for the first quarter, with an increase of almost 50% in its Ebitda to 359 million euros, and a 6% increase in comparable sales over one year.
(Bart Meijer report, Augustin Turpin, edited by Blandine Hénault)
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