By Joe Salimando
Philips Lighting is an industry leader. Of course, three
major companies make light bulbs, so one can (if need be) “qualify” that
Certainly, Philips enthusiastically embraced “green” before
most in industry. And when the DoE offered the “L Prize” for LED lighting,
Philips submitted (for a long time it was the ONLY submittal) – and won!
On the LED front: As tedmag.com
reported earlier, in Q4/2011, LED sales accounted for 18% of lighting
revenues (!!!). AND: Plans are ambitious. According to Digitimes
Research, “Philips plans to invest [$2.6B] through 2015 on green products…The
firm also hopes by 2015 that sales of LED lighting will reach 50% of total
Further: In a transcript of Jan. 30 appearance on
BloombergTV, Frans Van Houten, CEO of the whole company, said: “The market
share that Philips has in LED is actually higher than in our traditional
Lighting as leader…or laggard?
Philips’ activities transcend lighting and include
healthcare. On TVs: Despite Van Houten’s “trying to ditch the business since
April,” according to an Associate Press report, the company still makes ‘em.
Also: Toothbrushes, coffee machines – etc.
Lighting accounted for 30.9% of Q4 company-wide revenues. As
it turned out, this wasn’t necessarily good, as the company showed:
Above: Q4 EBITA in the Philips Lighting
operation. EBITA = earnings before interest, taxes, and amortization.
Philips’ Q4 document (find
it here) attributed the EBITA fall to “continued operational issues at
Consumer Luminaires and Lumileds, as well as macro factors which impacted
pricing in our consumer lighting business.” The company took a $167.5M
write-down in Lighting (attributed to rebranding some product lines).
Another angle on LEDs
Keep in mind that the Internet is a wild place, where anyone
can write anything. Then: See a
negative Investopedia.com write-up (posted before Q4 financials) on
Philips. Why? Read this slice:
LED/lighting business is really just not working out
for anybody right now. The aforementioned Cree is off its lows, but the stock
is just a shadow of its 2009/2010 self when LED was all the rage. Likewise
General Electric and Siemens NYSE:GE) aren't making much money in lighting either, and both
would like to be rid of these businesses.
construction activity has been really weak, but if neither GE or Siemens think
they can make significant returns over the long haul in lighting, why will
Philips be successful?”
not-necessarily essential stuff I found on Philips – too good to omit:
OLED (organic LED) roof for your car? Philips and
healthy hospital lighting
added a 40-story wind turbine to its plant in Fall River MA (no link b/c the Boston
Globe wants you to pay to see article). No, the company isn’t in the wind
street light – THE solution for folks living
without electricity (reportedly, 1.8 billion of 7 billion Earth-bound homo
sapiens are in the dark daily, except for fire, when the Sun disappears).
Joe Salimando of EFJ
Enterprises is a consultant, web content provider, and wordsmith based in
Oakton, Va. To contact him, call 703-255-1428. See also The EleBlog.
Personal Disclaimer: The appearance of the
ambling pachyderm is indicative of the writer's obsession with elephants, not
his political leanings.
NOTE: THIS COLUMN REFLECTS ONLY THE OPINIONS OF ITS
AUTHOR AND DOES NOT REFLECT THE OPINIONS OR POLICIES OF NAED, TED MAGAZINE, OR
THE ADVERTISERS ON THE TEDMAG WEB SITE.
© 2014 The Electrical Distributor. All rights reserved.