AMSTERDAM, April 30 (Reuters) - Signify, the
world's largest lighting maker, said it would continue to suffer
supply-chain disruptions into the second quarter including
fallout from the Suez Canal blockage, prolonging shortages of
semiconductor and other components.
However the company's shares rose strongly after it reported
first-quarter profits that included an upgrade to its forecasts
for sales and margins over the full year, as most supply issues
were expected to be resolved in the second half.
"While we see signs of an economic recovery, supply-chain
performance is being challenged by component shortages, which
are impacting the first half of the year," CEO Eric Rondolat
said on Friday on a call with reporters.
However he said sales of networked lights, which require
computer chips, were strong and the company expects an upswing
in sales of professional lighting products in the second half.
The company raised its comparative sales growth outlook for
2021 to between 3% and 6%, from the better than 0% it had
forecast in January, and said its margins would increase to
around 12% from 10%.
Signify shares were up 6.9% at 47.13 euros by 0857 GMT,
increasing their year-to-date gain to 36%.
Detailing the company's current supply-chain problems,
Rondolat said the company had faced delays in shipments due to
poor weather in the United States, the blockage of the Suez
Canal in late March, and the shortage of shipping containers in
both the United States and China.
Signify is facing an ongoing components shortage, which
includes both semiconductors and other electronics used in
lights as well as of some metals and plastics.
Around 50 million euros ($60.5 million) worth of sales had
been delayed from the first quarter into the second quarter as a
result, he said.
The company's first-quarter net profit of 60 million euros
more than doubled from 27 million euros a year earlier at the
start of the coronavirus pandemic.
Sales rose 3.2% to 1.60 billion euros.
Analysts for JPMorgan, which has a neutral rating on the
shares, said Signify's upgraded outlook in particular was
"This indicates confidence in the ability to offset the now
rising raw material headwinds and an second half recovery in
Professional (Lighting)", they wrote in a note.
($1 = 0.8268 euros)
(Reporting by Toby Sterling; Editing by Vinay Dwivedi and