LEDs continue to drive growth at Philips

Growth in Philips’ lighting business lagged behind the company as a whole in the second quarter of the year – but sales of LED products continued to grow rapidly.

Revenue for the Dutch electronics giant’s lighting division was up two per cent compared to the same period last year, while Philips as a whole grew by three per cent, largely thanks to the strong performance of its consumer lifestyle division.

Sales of LED products, meanwhile, were up by a massive 28 per cent, representing a quarter of all lighting sales. CEO Frans van Houten (pictured) said: ‘We continued to see strong traction in LED.’

Sales of professional lighting solutions fell (although not as far as in the previous quarter), while there was ‘mid single-digit’ growth in consumer luminaires and the Lumileds LED business, and ‘low single-digit’ growth in light sources and electronics. Total lighting sales for the quarter were  approximately €2.05bn.

Profits for lighting were also up, with earnings before income tax and amortisation rising to €153 million, or 7.5 per cent of sales.

The lighting business has reduced its headcount by 3,601 in the past year, driven by what Philips called ‘rationalisation of the industrial footprint’.

Van Houten voiced concern about ‘economic uncertainties around the world’ but said the company remained committed to its financial targets for the year.