Philips reports 32 drop in Q1 core profit
Expands recall of ventilators
Flags range of risks for 2022 outlook
Shares drop almost 11

AMSTERDAM, April 25 Reuters Philips shares dropped almost 11 on Monday as the Dutch health technology company expanded a recall of ventilators and flagged multiple risks to its growth outlook for the rest of the year.

The supplier of products ranging from large medical systems to toothbrushes and shavers said it still expected sales and profitability to recover in the second half of the year.

But Philips also said that any deterioration of the COVID19 situation in China, of the war in Ukraine or of the supply chain challenges and inflationary pressures could put this outlook at risk.

This is not the time to give up on the outlook, but the situation is very vulnerable, Chief Executive Frans van Houten told Reuters.

Especially in China, where the COVID lockdowns are a major risk to international trade and to us.

The Amsterdambased company said adjusted earnings before interest, tax and amortisation EBITA dropped about a third in the first quarter from a year earlier and comparable sales fell 4, as it continued to struggle with a global shortage of parts and the fallout of its recall operation.

Philips shares traded down 10.5 at 0850 GMT in Amsterdam.

ING analysts said the cautious stance was likely to bring down market expectations for results in this year and next.

Growth is also being held back by the company39;s sleep and…