Chip shortage costs Signify 100 million euros in sales

Signify makes a loss in sales
Photocredit: Colin Behrens, Pixabay.com

A financial blow for Eindhoven-based lighting company Signify. The global chip shortage has cost the former Philips lighting division some 100 million euros in sales in the third quarter. Those chips are needed for smart lamps like the Philips Hue.  

The chip shortage is not the only cause of the missed sales. Signify also had many problems with the transportation of products. That has become much more difficult and expensive, due to a lack of containers in shipping and congestion at the ports.

Those problems don’t seem to be fixed overnight. However, Signify still expects sales to grow by at least 3% for 2021. “We already have plans in place to deliver all backlogged orders quickly to reduce disruption for our customers,” says top executive Eric Rondolat.

More profit, though
Although turnover fell sharply compared to last year, profits rose by about 5%. An important reason for this is that Signify had to pay less in taxes.

Source: Omroepbrabant.nl

Translation: Chaitali Sengupta. She also gives online INBURGERING classes.

 

 

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