LEDs drive double digit growth at Philips Lighting

Lighting was one of the brighter spots in Philips’s 2010 fourth-quarter figures, reported last month. Outgoing president and CEO Gerard Kleisterlee said sales of Lumileds and LED-based lighting products and services continued at a high double-digit rate, in contrast to less-than-impressive figures for some other parts of the company’s operations.

Gerald Kleisterlee

These are Kleisterlee's last results, he is joining Vodaphone as CEO

Driven by the growth in LEDs, revenues from the group’s lighting business increased by 37 per cent in the fourth quarter of 2010 from the same quarter a year before, and lighting revenues for the entire year were 9 per cent higher.

The company predicted that the global lighting market would grow by an annual compound rate of 7-9per cent between now and2015, with emerging markets in Asia and LEDs providing the main stimulus. It said its projections showed that LEDs will represent about half of the global lighting market in2015 and up to 75 per cent in 2020.

Weak demand in mature markets was the main cause of disappointing reports overall, which showed net profit of £392 million for the quarter, up from £219 millionfor the same quarter of 2009but well below forecasts of£448 million, sending the shares down by more than6 per cent after the figures were released.

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Megaman has moved into a spanking new £81 million factory in China after sales of LED lamps boomed. Pennie Varvarides reports from Xiamen