LED demand drives Zumtobel’s sales

LED demand drives Zumtobel’s sales

Business news |
By eeNews Europe

According to the company, the demand for energy-efficient lighting solutions and "the considerable potential of LED technology are, and will remain, the major growth drivers of the professional lighting industry". Against a profit decline of some 13% and despite an increasingly unsettled business environment on account of the current euro crisis, the Zumtobel Group posted a revenue growth of 8.4% in the first six months of the 2011/12 financial year (May-October). Consolidated first-half revenues totaled EUR 666.8 million (prior year period [PY] EUR 615.4 million).

Implementation of the growth strategy presented in April 2011 brought initial successes in the European markets of the Lighting Segment (Zumtobel / Thorn). Segment revenues rose 11.0% to EUR 488.8 million in the first six months. By comparison, the Components Segment (Tridonic / Ledon) with its higher margins showed significantly weaker development. Revenues rose just 1.8% to EUR 218.5 million in the first half of 2011/12 (PY: EUR 214.7 million). Revenues from the sale of LED products continued their upward trend, reaching almost twice their prior-year level at EUR 82.2 million (+ 96.6%; PY: EUR 41.8 million), the company informed.

The economic environment continued to deteriorate throughout the past quarter. Against this background, the company revoked its sales and profitability guidance of 10% sales increase and an EBIT margin of 6.4%. Instead, the management now predicts sales growth of "substantially less than 10%", adding that it is not possible to provide exact guidance at the present time. Despite this bleak outlook, the company plans to stick to its investment plans communicated earlier.

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