Royal Philips (NYSE:PHG) said today that the slower-than-forecast return of an Ohio CT scanner plant will put a roughly $265 million hit on its 2014 results, sending share prices down in mid-morning trading.
The Dutch conglomerate said it’s resumed shipments of its Brilliance iCT device from the Cleveland plant, but said the production ramp-up during the 4th quarter last year was slower than expected. Philips shut the plant down early last year after the FDA said its manufacturing controls were inadequate.
The delay means that full-year 2014 EBITA will be down €225 million, rather than the €180 million ($212 million) Philips was banking on, according to a regulatory filing.
The news sent Philips shares down 1.1% today to $27.76 apiece in mid-morning activity.
"Although these delays have impacted our broader healthcare performance, we are very pleased to now build further momentum in delivering strong imaging innovations to our customers," CEO Frans van Houten said in prepared remarks.
Philips said it expects to post adjusted earnings before interest, taxes & amortization of about €735 million ($866 million) for the 4th quarter. The company is slated to release its full-year and Q4 results Jan. 27.