Philips accelerates lighting business changes
Philips is accelerating the drive to LEDs, the group said today in its second quarter and semi-annual results 2014. The move follows the company's announcement a few weeks ago to combine its LED and automotive lighting businesses in a stand-alone company.
The firm's LED-based sales grew 43 percent in Q2 and now represent 36 percent of total Lighting sales, compared to 25 percent in Q2 2013. There was a 13 percent decline in conventional lighting sales in the quarter.
Along with the increased focus on LED, Philips will pull forward plans to scale down production and cut costs in the conventional lighting sector over the coming years in an effort to retain profitability. To this end, it will be raising charges in the second half of 2014 from EUR 100 million to approximately EUR 170 million.
"In Lighting, we are intensifying our focus on connected LED lighting systems and services, LED luminaires, and LED lamps for the professional and consumer markets," said Frans van Houten, CEO. "Our decision to combine the Lumileds and Automotive lighting businesses into a stand-alone company within Philips will allow it to extend its leading portfolio of digital lighting components and achieve robust growth, serving even more customers in the industry, as well as Philips Lighting."