Lighting manufacturer Signify reports higher profit in first quarter amid restructuring

Signify, the lighting manufacturer based in Eindhoven, reported a higher net profit in the first quarter, boosted by cost-cutting measures. The company also announced the appointment of a temporary CEO, following the early departure of Eric Rondolat, who had led the company since its 2016 spin-off from Philips.

Signify's net profit reached 67 million euros, compared to 44 million euros during the same period last year. The company's financial performance was reportedly aided by ongoing restructuring efforts, which have included significant job cuts over the past few years. Signify's workforce now stands at 29,697 employees, down from 31,339 at the end of the first quarter of 2024. This reduction includes hundreds of job losses in the Netherlands.

Rondolat, who holds both French and Italian nationality, will step down as CEO on Friday following the annual shareholders' meeting. He had led the company since its separation from Philips and previously served as the head of Philips’ lighting division.

Željko Kosanović, Signify's current Chief Financial Officer, has been appointed as interim CEO while the company continues its search for a permanent successor. Kosanović will also maintain his role as CFO during this transition period. Signify has expressed hopes of finalizing the search for a new permanent CEO by next month.

Despite the profit increase, the company's revenue declined slightly to just over 1.4 billion euros. Signify has faced challenges, including weaker demand in the professional market in Europe, where sales of lighting systems for office spaces and streets have struggled. Additionally, sales of traditional incandescent bulbs continue to decline.

The company also cited market volatility, partly driven by import tariffs imposed by former U.S. President Donald Trump. Despite these challenges, Signify has reaffirmed its expectations for the full year.