Signify's first-quarter sales and profit meet expectations amid component shortages

  • Signify, the world's largest lighting maker, reported on Friday first-quarter net profit and sales in line with expectations, as component shortages kept it from feeling the full effects of an economic rebound.
  • The company raised its comparative sales growth outlook for 2021 to between 3% and 6% from the better than flat it had forecast in January.
  • Rondolat had said in January that while online orders from home users had been strong, demand for professional projects and products had not yet recovered.

Signify, the world's largest lighting maker, reported on Friday first-quarter net profit and sales in line
with expectations, as component shortages kept it from feeling the full effects of an economic rebound.

"While we see signs of an economic recovery, supply chain performance is being challenged by component shortages, which are impacting the first half, and will, to a lesser extent, impact the second half," chief executive Eric Rondolat said in a statement.

The company raised its comparative sales growth outlook for 2021 to between 3% and 6% from the better than flat it had forecast in January.

Rondolat had said in January that while online orders from home users had been strong, demand for professional projects and products had not yet recovered.

He said on Friday that Asian markets were recovering and there was a "partial" recovery in Europe, while sales declined on a comparable basis in the Americas, its largest geography.

"We expect continued vaccination rollouts and easing of lockdowns to drive an upswing in demand for our professional portfolio in the second half of the year," he said.

The company's net profit of 60 million euros ($72.7 million) was up from 27 million euros a year earlier at the start of the coronavirus pandemic. First-quarter 2021 sales rose 3.2% to 1.60 billion euros.

Analysts had estimated first-quarter net income at 60 million euros on revenue of 1.59 billion euros, Refinitiv data showed.

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