Signify: second-quarter profit up on cost cutting
(CercleFinance.com) - Dutch lighting maker Signify said its second-quarter net profit has risen by 72% to 50 million euros due to ongoing cost reduction initiatives.
Revenue dropped 3.9% to 1.5 billion euros, even though LED-based comparable sales grew by 0.2%, the company said in a statement on Friday.
The former lighting unit of Dutch electronics giant Philips said that adjusted indirect costs fell by 8% to 37 million euros on a currency comparable basis.
In its statement, the world's largest lighting maker said it expects its growing profit engines (LED, professional and home) to deliver a comparable sales growth in the range of 2% to 5% this year.
Signify also said that in 2019 it aims to reach an adjusted EBITA margin in a range of 11% to 13%, which it set at the time of its IPO in May 2016.
Its margin reached 9% at the end of the second quarter.
Separately, Signify this morning said that it has agreed to acquire a 51% stake in Klite, a Chinese provider of high-quality, cost-efficient LED lamps and luminaires.
Signify shares are down 4.6% on Euronext Amsterdam after this report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Revenue dropped 3.9% to 1.5 billion euros, even though LED-based comparable sales grew by 0.2%, the company said in a statement on Friday.
The former lighting unit of Dutch electronics giant Philips said that adjusted indirect costs fell by 8% to 37 million euros on a currency comparable basis.
In its statement, the world's largest lighting maker said it expects its growing profit engines (LED, professional and home) to deliver a comparable sales growth in the range of 2% to 5% this year.
Signify also said that in 2019 it aims to reach an adjusted EBITA margin in a range of 11% to 13%, which it set at the time of its IPO in May 2016.
Its margin reached 9% at the end of the second quarter.
Separately, Signify this morning said that it has agreed to acquire a 51% stake in Klite, a Chinese provider of high-quality, cost-efficient LED lamps and luminaires.
Signify shares are down 4.6% on Euronext Amsterdam after this report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.