Why Koninklijke Philips Stock Is Sinking Today
Shares of Koninklijke Philips NV (NYSE: PHG) had sunk by 11.2% as of 11:32 a.m. ET Wednesday. The steep decline came after the Dutch healthcare company provided an early update on its third-quarter results and full-year outlook. Philips will deliver its official Q3 results on Oct. 24.
Investors were most concerned about Philips' announcement that it expects to record a goodwill impairment of 1.3 billion euros in the third quarter. The anticipated write-down stems from a lower sales forecast for the company's sleep and respiratory care business.
Earlier this year, the U.S. Department of Justice issued a subpoena to Philips related to the company's recall of its sleep apnea and ventilator machines. Then in July, the Justice Department proposed a consent decree -- a settlement agreement approved by a court that would not require any party to admit liability.
Source Fool.com
