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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 in October, now expects an adjusted EBITA margin of approximately 10% for both the fourth quarter and the full year 2022.
This compares with the previous full-year guidance of the lower end of the 11.0-11.4% range.
“Signify experienced a stronger than anticipated deterioration of its business in China due to ongoing COVID-related disruptions, a much lower growth in the OEM channel and a weaker indoor professional business than expected,” the company said in a statement.
Comparable sales growth is now seen at 1.2% for 2022, versus a previous guidance of a 2-3% increase.
“The company now expects to report a full year 2022 free cash flow of approximately 445 million euros ($479 million) or 5.9% of sales,” Signify said.
Signify was created by the spin-off of Philips’ lighting business in 2016.
