Chips and ships: supply woes hit Philips outlook

Health technology firm Philips has cut its outlook for the coming months.

But it's not down to any lack of demand.

Instead, Chief Executive Frans van Houten has a simple explanation.

It's chips and ships, he says.

The global shortage of semiconductors has left Philips unable to keep up with demand.

Orders for its products actually rose 17% over the July-to-September quarter.

But chip supplies couldn't keep pace.

And the Dutch firm thinks the problem will drag on into the second half of next year.

Then there are congested ports.

They've left Philips products stuck on ships waiting to unload.

Overall, the supply chain problems are expected to knock around $232 million off sales in the final quarter of this year.

Though the company does expect growth to return next year.

Philips shares were down around 3% by early afternoon on Monday (October 18).

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