Philips Lighting Reports Better-Than-Expected Q4 Earnings
On Friday, the largest maker of lights in the world, Philips Lighting reported an incredible core fourth quarter earnings.
The company reported better than the estimated fourth quarter earnings on Friday which was supported by the numerous cost-cutting as well as lower research and development expenses. The company and its earnings were beyond the expectations of the analysts.
Philips Lighting grew from Philips two years ago on 2016. The company has reported that it will continue cost cutting and it also expected to earn and benefit the most in 2018’s second quarter with having a soft start in the first quarter.
The adjusted earnings valued at 207 million euros that amounts to $258.67 million as per reports of the company before taxes, interests and amortization EBITA. A year ago the company had made 188 million euros and this shows a good growth. The analysts had expected the company’s EBITA to stand at 198 million euros.
The CEO of Philips Lighting Eric Rondolat said that the company’s EBITA grew to 87 million euros from 46 million euros a year ago due to growth in most of the regions. This growth has resulted in progress for the professional lighting business.
The comparable sales of the company were completely in line with the expectations and grew by 3% at 1.98 billion euros. Philips Lighting also said that the company intends to target positive full year sales growth along with 10-10.5% of EBITA margins.
The fourth quarter brought about the strongest and comparable sales of the company. The sales grew 3% to 1.89 billons euros at the margin value of 10.9%.
The company said although the geographies were widening mostly, Philips Lighting still suffers from tough market scenarios and conditions in the Middle East especially Saudi Arabia.
Due to the higher restructuring payments, the company’s free cash flow would continue to remain positive but will decline from the 403 million euros in 2017.
Philips Lighting’s biggest competitor in United States is Acuity Brands and the CEO of Philips Rondolat has stated that the company is not losing market share.