Signify has reported its financial results of the second quarter of 2019. The company registered sales of EUR 1.477 billion (US$ 1.65 billion) with an on-year decrease of 6.1%. LED-based sales increased by 0.2%, accounting for 77% of total revenue.
Eric Rondolat. CEO, Signify, commented, “We are satisfied with the ongoing improvement in the operational profitability and cash generation of our businesses in the second quarter. Sales declined mainly due to economic headwinds in Europe and non-recurring country-specific developments in growth markets. While market conditions remain challenging, the solid momentum in our growth platforms, our relentless focus on operational efficiencies and our strong free cash flow profile position us well for the future.”
In addition, Signify has also revealed its plans of acquiring 51% stake in Chinese LED lighting company Klite Lighting with the aim to further strengthen its strategic position in the LED market with the investment. The company believes that the transaction will bring additional scale and innovation power to Klite Lighting, allowing it to generate further cost efficiencies and enhance its product development, including connected lighting offerings.
Klite Lighting has been one of Signify’s main suppliers of high-quality and very cost-efficient LED lamps and luminaires for many years. The transaction, which is subject to customary closing conditions, is expected to close in the second half of 2019, after which Klite Lighting will continue to operate as a standalone entity.
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