Signify Reports Sales Drop in 3Q19 due to Macro Environment

Signify published the financial results of 3Q19 last week with a 5% decrease in comparable sales growth while its LED-based business improved on-year by 2.6%. The company said that the “challenging macro environment with lower market activity in Europe, U.S., Greater China as well as a major impact of tightening liquidity in India,” was a major reason for the flat sales growth.

The Dutch lighting company reported a revenue of EUR 1.53 billion (US$ 1.7 billion) in 3Q19, down by 3.3%YoY. Accumulated revenue for 2019 until the end of September came to EUR 4.5 billion (US$ 4.99 billion) with an on-year drop of 2.9%. Net profit in 3Q19 fell 20.1% to EUR 74 million (US$ 82 million) compared to EUR 93 million (US$ 103 million) in 3Q18. However, for the first nine months, Signify’s net profit grew by 18.6%YoY to EUR 169 million (US$ 187.4 million).

Despite that fierce competition in the LED industry, Signify reported that its LED lamps delivered a solid performance while sales in LED electronics continued to be impacted by lower customer demand in most regions. Sales amounted to EUR 457 million (US$ 506.7 million), an increase of 0.9% on a comparable basis.

For Signify’s Professional business which covers horticulture lighting, LiFi and IoT applications, both revenue and profit increased. Sales came to EUR 698 million (US$773.5) with a 3.5% growth and income from operations rose by 27.1% YoY in 3Q19. Driving momentum for Professional section came from solid performance in China and the Middle East but was partly offset by the tepid European and Indian Market.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Tokushima, Japan - 6 March 2024: Nichia, the world's largest LED manufacturer and inventor of the high-brightness blue and white LED, has started mass production of the new UV-B (308nm) and UV-A (330nm) LEDs in its popular 434 Series packa... READ MORE

New XLamp® S Line LEDs enhance growth, last longer, lower energy costs Horticulture and other forms of agricultural lighting require application-tuned ratios of spectral content, high efficacy and long lifetimes. Whether you are interested... READ MORE