Electronics giant Philips has reported a surge in demand for its LED lighting products, confirming that it will have to accelerate the "rationalisation" of its conventional lighting technologies.
The company yesterday released financial results for the third quarter of the year showing that overall comparable sales grew five per cent year-on-year to €6.1bn, while the company's EBITA hit €450m.
The lighting division posted a solid performance given tough market conditions, with sales growing four per cent in like-for-like terms to €2.14bn.
Significantly, the company confirmed sales of LED technologies rose 51 per cent year-on-year, meaning that LEDs now account for 24 per cent of the division's sales. The company did not state the precise level of LED sales, but confirmed that LEDs account for around a quarter of sales, which would suggest quarterly revenue from the technology stands at over €500m.
Philips chief executive Franz van Houten hinted the surge in demand for LEDs will force the company to accelerate its plans to phase out other conventional lighting technologies.
"In Lighting, LED-based sales continued to show strong momentum with comparable sales growth of over 50 per cent, which requires us to accelerate the rationalisation of our conventional lighting industrial footprint," he said in a statement to accompany the results.
The company also pointed to a number of high profile contract wins, including a deal to supply LED systems to around 140 E-mart stores in South Korea, a partnership with hotel chain Rezidor to provide over 200,000 Master LED lamps, and an alliance with property management giant Jones Lang LaSalle to offer energy management and intelligent lighting systems to all the company's clients.
The results represent another boost to a global LED sector that is experiencing soaring demand as corporate customers seek to improve the energy efficiency of their estates. According to various estimates, LED systems can cut lighting electricity bills by between 40 and 80 per cent, slashing energy bills and consistently delivering payback periods of under three years.
