Philips Lighting 1Q Net Profit, Sales Fell

By Carlo Martuscelli

Philips Lighting NV (LIGHT.AE) said Thursday that first-quarter net profit fell 67% in the first quarter as sales decreased due to the poor performance of its home division.

The Dutch lighting company, which was spun off from Koninklijke Philips NV (PHIA.AE), posted a net profit of 21 million euros ($25.6 million) for the quarter ended March 31 compared with EUR64 million in the first quarter of 2017. Sales decreased 11% to EUR1.50 billion.

Lower operational profitability, higher restructuring costs of EUR29 million, and a real-estate gain which was booked in the first quarter of 2017 contributed to the decline in net profit, Philips Lighting said.

Sales fell by 3.5% on a comparable basis.

Chief Executive Eric Rondolat said that a weak performance in the company's home division--particularly in the U.S.--contributed to the soft start of the year. The division reported a 13% decrease in sales revenue.

The company said it is targeting increasing in its adjusted Ebita margin to 10.0% to 10.5% from 9.6%. It said it aims for comparable sales growth in the full year on the basis of a strong second half.

Philips Lighting said it expects that free cash flow in 2018 will be lower than 2017 due to restructuring payments.

Write to Carlo Martuscelli at [e-mail]

(END) Dow Jones Newswires

April 26, 2018 01:36 ET (05:36 GMT)

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