Signify doubles profit on declining sales

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On a comparable basis, Signify saw a 3.3 percent year-on-year drop of sales in the first quarter, but managed to more than double its net income. The Eindhoven-based lighting company reported sales of 1.478 million euros and a net income of 44 million euros in Q1. The improvement in profitability is the result of “continued progress in our simplification actions”, said CEO Eric Rondolat.

Signify has been coping with headwinds in China and Europe while sales of LED and smart lighting products fail to make up for decreasing demand for conventional lighting products. Still, Rondolat is “satisfied with the 1.1 percent sales growth of our profit engines,” referring to the results of the LED, Professional and Home activities combined.

In the next quarter, the former Philips division expects a comparable sales growth of 2 to 5 percent for modern lighting products and a decline of 21 to 24 percent for traditional lighting bulbs.

On the left: the Cepsa Tower in Madrid, Spain. Photo: Signify