Light maker Signify's Q2 adjusted core profit misses forecasts (updated)

Signify

26/07/2024 06:36

(Adds EBITA margin paragraph 3, CEO quote in 4, details in 5-7)
       July 26 (Reuters) - Signify  LIGHT.AS , the world's
biggest maker of lights, reported second-quarter adjusted core
profit on Friday that missed expectations, citing persisting
market softness in Europe for the professional business and in
China.
    Adjusted earnings before interest, taxes and amortisation
(EBITA) dropped 13.2% on the year to 118 million euros ($128.11
million), falling short of the 138 million analysts expected on
average in a company-compiled consensus.
    The adjusted EBITA margin decreased    by 40 basis points to
7.9%, as gross margin expansion was offset by an
under-absorption of fixed costs, it said.
    "We remain cautious on Professional Europe and China for the
second semester, but expect to see positive traction for
Professional in the Americas, as well as the OEM and Consumer
businesses," Chief Executive Officer Eric Rondolat said.
    In a statement, he added that the company maintained its
free cash flow generation guidance at 6% to 7% of net sales.
    Net sales fell 9.8% from a year earlier to 1.48 billion
euros, also hit by a negative foreign currency effect of 1.4%,
mainly from the Chinese yuan, Signify said.
    Signify, spun off from Philips  PHG.AS  in 2016, said in
January it would lay off 1,000 employees across 30 countries
this year in a broader cost-cutting plan to save 200 million
euros annually.
($1=0.9211 euros)

 (Reporting by Alberto Chiumento; Editing by Clarence Fernandez)
 ((Alberto.chiumento@thomsonreuters.com))