Signify, the world's biggest manufacturer of lights, on Friday reported a larger-than-expected drop in second-quarter sales, as weakening economic growth dampened demand in Europe.
Comparable sales dropped by 6% to 1.48 billion euros ($1.65 billion), missing analysts' expectations of 1.51 billion euros, as demand for LED lamps in Europe waned and the long-term decline in traditional incandescent lamp sales continued.
Adjusted earnings before interest, taxes, and amortization (EBITA) grew 2% to 133 million euros ($148.3 million), slightly less than analysts' expectations.
"Sales declined mainly due to economic headwinds in Europe and non-recurring country-specific developments in growth markets", Chief Executive Eric Rondolat said.
The Dutch company maintained its outlook of 2%-5% growth in its LED, professional and networked home lighting business lines for 2019, and said market conditions "remained challenging".
The company, formerly known as Philips Lighting, also reiterated an ambitious adjusted EBITA margin target of at least 11% by the end of this year.
It came in at 9% in the second quarter, up from 8.4% a year ago.