Signify: lights out - margin targets difficult to meet

(CercleFinance.com) - Signify's Q2 operating margin fell once again, casting further doubt on the credibility of its annual targets.


On Friday, the Dutch lighting specialist reported adjusted EBITDA that is down 13% at E118m for the quarter just ended.

Its operating margin (also adjusted), contracted to 7.9% from 8.3% a year earlier, under the effect of persistently high fixed costs.

Despite this, the Group has reiterated its annual target of an operating margin of between 10% and 10.5%.

Signify believes that the weakness of its lighting activities for professionals, both in Europe and China, should be more than offset by the strength of the professional market in America and the consumer market in general.

On the stockmarket, Signify shares were down over 7% at lunchtime, one of the biggest fallers in the pan-European STOXX Europe 600 index.


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