After a solid fourth quarter reaffirmed the importance of services and Internet connectivity to the company’s future, CEO Eric Rondolat reveals that a new moniker is coming soon.
After reporting a fourth quarter and year in which it returned to growth on the strength of services and Internet connectivity, and in which the professional sector took over as the leading profit maker, Philips Lighting today revealed it is soon changing its name, a switch expected to reflect the importance of IT-based lighting and services.
The world’s largest lighting company said that sales for the quarter ending Dec. 31 and for the year were €1.89 billion and €6.97 billion, respectively. A 3% increase in comparable sales for the quarter helped nudge yearly comparable sales growth to 0.5%, reversing a decline that Philips had suffered in 2016, when the quarter fell by 3.2% and the year dropped by 2.4%.
The biggest percentage growth came in the home sector — a young market where Philips sells smart systems based on its Hue line of LED bulbs that change brightness, colour, and CCT prompted by many different Internet inputs — followed by the professional sector, in which Philips typically sells Internet-connected lighting to cities and commercial entities. Both considerably outgrew LED electronics — circuitry that Philips sells to lamp and luminaire makers, which was flat for the quarter — as well as conventional lamps, which shrunk.
“We intend to announce our new corporate name in the first half of 2018,” Rondolat said. The name change will come roughly two years after former parent Royal Philips spun out Philips Lighting in a stock market offering. “Needless to say, we will continue to use the Philips brand for our product as we have a brand license agreement for the coming decade.”