(Recasts, updates after CEO call)
AMSTERDAM, Oct 29 (Reuters) – Component shortages and supply chain glitches hit sales at Signify, the world’s largest lighting maker, in the third quarter, taking a toll on its core earnings.
Signify, the former lighting arm of Philips, said on Friday that demand for products such as energy-efficient LEDs and networked lighting systems remained strong.
But supply issues had knocked 100 million euros ($117 million) off third quarter sales and it now expects full year sales will be at the bottom end of its guidance of 3-6% growth.
“We believe that these unprecedented supply chain issues are transitory and are confident in our ability to convert demand into sales growth as the situation stabilizes,” Signify CEO Eric Rondolat said in a statement.
Signify’s dimmer outlook saw its shares trade trading 6.9% lower at 41.10 euros at 0938 GMT in Amsterdam.
Rondolat said the supply chain issues were expected to continue but lessen through the end of 2022, assuming there are no new setbacks such as recent stoppages at semiconductor plants in Malaysia or port closures.
“Signify has been materially exposed to the global shortage of electronic components, regional lockdowns and global logistics challenges, including container shortages and port congestions,” it said.
Third quarter sales fell 4.8% from the same period year a earlier to 1.64 billion euros, while adjusted earnings before interest, taxes, and amortization (EBITA) dropped 8.4% to 182 million.
Analysts in a company compiled poll had forecast EBITA at 198 million euros on sales of 1.72 billion.
Rondolat said that Signify had taken short-term measures including purchasing components on spot markets and redesigning some products to make use of parts that are easier to obtain.
In the medium term, he said, Signify will realign its production and supply chains to major geographical markets in Asia, Europe and North America. ($1 = 0.8573 euros) (Reporting by Toby Sterling; Editing by Christian Schmollinger and Vinay Dwivedi)