Lighting maker Signify cuts 2022 outlook again on China, business lighting Reuters via

Biden says U.S. Q3 growth shows economic recovery 'continuing to power forward' By Reuters

© Reuters.

(Reuters) -Signify, the world’s biggest maker of lights, on Thursday again cut its full-year profit margin and sales guidance, citing a steeper slowdown in China than expected and lower demand for professional indoor lighting.

Signify’s shares fell 3.9% in early Amsterdam trading to 31.84 euros.

The Dutch group, which had already cut forecasts in July and in October, now expects an adjusted EBITA margin of approximately 10% for both the fourth quarter and the full year 2022.

This compares with the previous full-year guidance of the lower end of the 11.0-11.4% range.

“Signify experienced a stronger than anticipated deterioration of its business in China due to ongoing COVID-related disruptions, a much lower growth in the OEM channel and a weaker indoor professional business than expected,” the company said in a statement.

Comparable sales growth is now seen at 1.2% for 2022, versus a previous guidance of a 2-3% increase.

“The company now expects to report a full year 2022 free cash flow of approximately 445 million euros ($479 million) or 5.9% of sales,” Signify said.

Signify was created by the spin-off of Philips’ lighting business in 2016.

Written by biedex markets