Philips former lighting division, now hived off and renamed Signify, issued a sales warning on Friday, saying difficult market conditions and raw material shortages would reduce this year’s expected sales.
The company booked second quarter sales of €1.5bn, a drop of 3.4% on the year earlier period. Net income totalled €29m, down from €73m in the 2017 second quarter, due to restructuring costs and a real estate gain last year,
‘Given the slow start to the year and as we expect ongoing challenging market conditions, we have decided to revise our sales outlook for the year,’ chief executive Eric Rondolat said in a statement.
‘We expect our sales growth performance to improve in the second half, but this will not be enough to deliver positive comparable sales growth for the full year.’
The company is also doubling the size of its share buy-back programme to €300m.
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