LONDON: Philips Lighting said it faces a “challenging” market in the Middle East, as it disclosed better-than-expected results for the forth quarter of 2017.
The world’s largest maker of lights said Friday its results had been underpinned by cost cutting and lower research and development expenses.
But the Middle East remained a tough market during the period, it said.
“Europe, the Americas and Greater China contributed to the growth, while market conditions in the Middle East and Turkey, most notably Saudi Arabia, remained challenging,” it said.
Adjusted earnings before interest, taxes, and amortization (EBITA) came in at €207 million ($259 million), the company said, compared with €188 million a year ago.
Analysts polled for Reuters had seen EBITA at €198 million.
“The firm’s professional lighting business, which grew EBITA to €87 million from €46 million a year ago, was benefiting from growth in most regions,” Chief Executive Eric Rondolat said.
In an outlook, Philips Lighting said it would target positive full-year sales growth.
“We will continue to focus on our cost reduction initiatives, and expect to benefit from higher savings as of the second half of 2018. We also aim to deliver positive comparable sales growth for the full year, with a soft start in the first quarter,” it said.
“We expect to generate solid free cash flow in 2018, which is, however, expected to be somewhat lower than the level in 2017 due to higher restructuring payments.”
Philips Lighting, listed on the Euronext Amsterdam exchange, said it would continue cutting costs.
The world’s largest maker of lights said Friday its results had been underpinned by cost cutting and lower research and development expenses.
But the Middle East remained a tough market during the period, it said.
“Europe, the Americas and Greater China contributed to the growth, while market conditions in the Middle East and Turkey, most notably Saudi Arabia, remained challenging,” it said.
Adjusted earnings before interest, taxes, and amortization (EBITA) came in at €207 million ($259 million), the company said, compared with €188 million a year ago.
Analysts polled for Reuters had seen EBITA at €198 million.
“The firm’s professional lighting business, which grew EBITA to €87 million from €46 million a year ago, was benefiting from growth in most regions,” Chief Executive Eric Rondolat said.
In an outlook, Philips Lighting said it would target positive full-year sales growth.
“We will continue to focus on our cost reduction initiatives, and expect to benefit from higher savings as of the second half of 2018. We also aim to deliver positive comparable sales growth for the full year, with a soft start in the first quarter,” it said.
“We expect to generate solid free cash flow in 2018, which is, however, expected to be somewhat lower than the level in 2017 due to higher restructuring payments.”
Philips Lighting, listed on the Euronext Amsterdam exchange, said it would continue cutting costs.
