Signify boss says 2023 is unpredictable
Added on 03 February 2023
Stung by a surprise downturn in the fourth quarter, Signify today took the unusual step of withholding sales guidance for 2023, as CEO Eric Rondolat cited ongoing economic uncertainty related to the war in Ukraine and other global volatility.
The world’s largest lighting company earlier this month warned that, contrary to prior expectations, sales would decline in the quarter ending Dec. 31. Today it reported that sales indeed fell by the recently anticipated 8.8% on a comparable basis, to €1.98 billion, which also marked a drop of 1.5% on a nominal basis from €2.01 billion in the same quarter a year earlier. Net income for the quarter tumbled 49.5% to €86 million from €170 million. The company said margins were hit hard by inflation, including energy prices.
Similar to when it flagged the decline two weeks ago, Signify cited “a further deterioration of the Chinese market due to COVID-related disruptions, a weaker indoor professional business, continued softness in the consumer segment, and lower growth in the OEM channel than anticipated,” as reasons for the drop in sales.
PHOTO: Signify CEO Eric Rondolat has seen enough volatility to know that sales projections are currently riddled with uncertainty. So the company is withholding a 2023 forecast for now. Rondolat is shown here speaking on sustainability at the 2020 World Economic Forum Annual Meeting. (License: https://creativecommons.org/licenses/by-nc-sa/2.0/)