Philips Ramping Up Ventilator Output for U.S., Global Demand
(Bloomberg) -- Royal Philips NV said it’s investing more than 100 million euros ($108 million) on increasing production of ventilators and other hospital equipment needed to combat the coronavirus.
- Sales at its sleep and respiratory care unit reported double-digit growth in the first quarter, the bright spot in otherwise deteriorating market. Philips said its margin at the business also widened.
- Philips plans a fourfold increase in production of ventilators, with the aim of supplying 43,000 units to the U.S. this year, all the while satisfying demand elsewhere.
- Faced with unprecedented demand, the Dutch company introduced a new stripped back ventilator, the E30, for use in emergencies. Production is expected to run at 15,000 a week this month.
- The Amsterdam-based company is caught in the middle of the coronavirus storm, with ventilator demand surging on the one hand, but hospitals holding off spending on other non-virus related equipment on the other.
- Philips placed 1 billion euros in notes to bolster liquidity, and switched to paying the dividend in shares rather than cash.
- For Philips’ first-quarter statement click here.
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