Signify has reported its results for the third quarter of 2018. The sales for 3Q18 came to EUR 1.6 billion (US$ 1.82 billion), with an on-year drop of 5.3 percent. The sales of LED-based products represented 70% of total sales and grew by 0.1% compared to 3Q17. Its net income was EUR 93 million (US$ 105.85 million), which dropped by 15.1% YoY.

According to the company, the decrease of sales in the third quarter of 2018 was due to a high comparison base and challenging market dynamics in several geographies. Signify expects its comparable sales growth in the second half of the year to be similar to the first half. Taking into account the solid progress in cost savings, the company remains confident that it will be able to improve the Adjusted EBITA margin to the lower end of the 10.0-10.5% range.

Since the beginning of 2018, Signify has reported its financial performance based on the portfolio changes that were announced in the first quarter of 2018. In the change, the company moved several LED lighting products from its Home and Professional units to LED unit.

"We substantially improved our profitability and free cash flow in the third quarter, while our sales performance was impacted by more challenging market conditions in several geographies and a strong base of comparison," said CEO Eric Rondolat. "Meanwhile, we continue to invest in growth and innovation to capture the strategic opportunities of smart and connected lighting and our teams remain focused on strengthening our leadership in changing market conditions."