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Philips Lighting maintains outlook as core earnings rise

by Natalia Olivas (2020-07-14)

Philips Lighting maintains outlook as core earnings rise

By Reuters

Published: 01:59 EDT, 22 July 2016 | Updated: 01:59 EDT, 22 July 2016

AMSTERDAM, July 22 (Reuters) - Philips Lighting, the world's largest maker of bulbs and lighting systems, said on Friday its core earnings rose 16 percent in the second quarter and maintained its outlook for the full year.

In the first results as a standalone company, it said sales in the latest period fell 6 percent to 1.7 billion euros ($1.87 billion), while adjusted earnings before interest, taxation and amortisation (EBITA) rose to 161 million euros.

The company was spun off in May from Philips, which holds 70 percent.

Philips Lighting said in a statement "the second quarter of 2016 supports our confidence that we are on the right track towards a return to positive comparable sales growth in the course of 2016."

In the third quarter, it expects restructuring and acquisition-related charges in 2016 of 1.5-2.0 percent of sales, or roughly 60 million euros, as previously indicated.

The company also said Stéphane Rougeot would succeed Rene van Schooten as chief financial officer from September.

Philips Lighting, whose nearest rival in the lighting business is Germany's Osram, hopes to use market dominance to fight against declining margins expanding in the more lucrative lighting services and systems businesses.

Philips listed in May at an IPO price of 20 euros, implying a market capitalisation of 3 billion euros ($3.4 billion), or an enterprise value of 4.5 billion euros including debt. If you loved this article and you wish to receive details with regards to both light And heat i implore you to visit our own website. The shares closed at 21.93 on Thursday. ($1 = 0.9068 euros) (Reporting By Anthony Deutsch and Thomas Escritt; Editing by Subhranshu Sahu and Sunil Nair)