Philips' has announced its LED-based sales grew 43 per cent during Q2. This area now represents 36 percent of total lighting sales, compared to 25 per cent in Q2 2013.
The Q2 report also shows lighting comparable sales increased 1 per cent year-on-year.
The EBITA margin for the lighting division, excluding restructuring and acquisition-related charges and other items, improved to 8.6 per cent, an increase of 0.5 per cent year-on-year.
Philips is taking actions to improve profitability in its lighting business while also accelerating the drive to LED. The company says its focus on optimising its manufacturing footprint and the overall cost base has resulted in eight consecutive quarters of year-on-year improved operational profitability. In addition, it said the recovery of its Consumer Luminaires division in Europe was progressing and that it aims to make this business break-even for the full year.
Frans van Houten, Philips CEO, said: "In lighting, we are intensifying our focus on connected LED lighting systems and services, LED luminaires, and LED lamps for the professional and consumer markets.
"Our decision to combine Lumileds and Automotive lighting businesses into a standalone company within Philips will allow it to extend its leading portfolio of digital lighting components and achieve robust growth, serving even more customers in the industry, as well as Philips Lighting.
"Lighting is taking advantage of the many opportunities in the growing LED space, driven by increased demand for energy efficiency and digital controls."
Philips saw a 13 per cent decline in its conventional lighting sales for the quarter. The company is therefore accelerating actions to ensure the continued profitability of conventional lighting over the coming years and plans to pull forward the ongoing industrial footprint rationalisation programme for the lighting sector, which will raise charges in the second half of 2014 from €100 million (£79 million) to approximately €170 million (£134 million).
Overall, the company reported stable comparable sales growth for Q2, with sales growth in geographies up 4 per cent. The company's figures also showed EBITA of €415 million (£328 million), compared to €601 million (£475 million) in Q2 2013.
Van Houten added: "While 2014 is expected to be a challenging year overall, we anticipate EBITA for the group, excluding restructuring and acquisition-related charges and other items, in the second half of the year to exceed the level of the same period last year. We continue to increase efficiency and drive profitable growth through the execution of our multi-year 'Accelerate' transformation and are firmly committed to reaching our 2016 targets."
