# Lighting maker Signify cuts 2022 outlook again on China, business lighting Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Signify NV Cuts Profit Margin and Sales Guidance Again in 2022 Meta Description: Signify NV, the world's largest lighting manufacturer, reduces its 2022 profit margin and sales forecast due to China slowdown and lower demand for indoor URL: https://financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lightinghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-12t075903z1lynxmpej0b081rtroptp4signify-results-1736814576818-compressed.jpg) (Reuters) -Signify NV, the world’s biggest maker of lights, on Thursday again cut its full-year 2022 profit margin and sales guidance, citing a steeper than expected slowdown in China 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 October, now expects an adjusted margin on earnings before interest, taxes and amortisation (EBITA) of approximately 10%. That [compares with the previous](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") full-year guidance of the lower end of the 11.0% to 11.4% range. It will publish fourth-quarter and full 2022 results on Jan. 27. Signify experienced a stronger than anticipated deterioration of its [business in China due to ongoing COVID-related disruptions](https://www.financedigest.com/disruption-and-innovation-four-predictions-for-the-business-landscape-in-2016.html "DISRUPTION AND INNOVATION – FOUR PREDICTIONS FOR THE BUSINESS LANDSCAPE IN 2016"), a much lower growth in … (component sales) and a weaker indoor professional [business than expected,”](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") the company said in a statement. Comparable sales growth is now seen at 1.2% for 2022, compared with a previous guidance of a 2-3% increase, with an 8% decline in the [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter"). ING analyst Marc Hesselink said in a note the company’s [shares have already been weak](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries"), down 27% from a year ago, as it is considered cyclical. However in October the company had said it was [seeing strong](https://www.financedigest.com/italys-mps-sees-safe-habour-ahead-after-strong-quarter.html "Italy’s MPS sees ‘safe habour’ ahead after strong quarter") demand for its energy-saving lights, especially in Europe. We expected that the focus on energy efficiencies would have offset some of the cyclical weakness but that was [clearly not the case,”](https://www.financedigest.com/speaking-clearly-the-case-for-voice-biometrics.html "Speaking Clearly: The Case for Voice Biometrics") Hesselink said. Signify said it expected free cash flow of 445 [million euros](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") ($479 million) for the full year, which Hesselink said was better than feared. Signify was [created by the spin-off of Philips’ lighting business](https://www.financedigest.com/6-ways-how-to-create-great-tiktok-videos-for-your-business.html "6 Ways How to Create Great TikTok Videos For Your Business") in 2016. (Reporting by Benoit Van Overstraeten; Editing by Sudip Kar-Gupta, Jane Merriman and Tomasz Janowski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---