Philips Says Coronavirus Could Hurt First Quarter Performance

AMSTERDAM, The Netherlands (Feb. 27, 2020) – Health technology company Royal Philips published its 2019 annual report this week, and in it said that the coronavirus outbreak in China is affecting both the company’s global supply chain and consumer demand there.

“While this is expected to have a negative impact on the financial performance of Philips in the first quarter of 2020, the company cannot quantify the magnitude and duration of such impact at this time given the fluidity of the situation,” Philips said in a news release published on Yahoo Finance. “Philips continues to monitor and assess its business operations daily, and will provide an update as appropriate.

In addition, Philips said it has implemented precautionary measures and protocols in connection with the COVID-19 outbreak based on recommendations from official health authorities, such as the World Health Organization (WHO).

“Additionally, Philips has mobilized resources to support the prevention and control of the COVID-19 outbreak,” the company wrote. “For example, the Philips Foundation with the support of Philips China, has donated medical equipment and supplies to the newly built Thunder God Mountain Hospital in Wuhan city to facilitate the diagnosis and treatment of pneumonia resulting from COVID-19 infections.”