August 5, 2022
5 Things to Know: Week Ending August 6
GE Lighting to lay off 209 workers and Signify comments on the recession
Here's a roundup of some of the week's happenings curated to help lighting people stay informed.
1. Signify Discusses Recession
As pundits in the U.S. debate whether the country is in a recession, Signify CEO, Eric Rondolat, spoke to investors about his global lighting business – maintaining 3-6% revenue growth guidance for 2023, while acknowledging that the company is navigating a recession. In 2021 the Americas region made up 38% of sales for the $7 billon lighting company.
"Effectively we are at the end of H1 at the higher end of the guidance that we have given for the year. Nevertheless, we are cautious regarding the potential -- well, I don't know if we have to say potential, I think we are facing the recession at this point in time. What we don't know is the magnitude of that recession moving forward. Effectively, we have an easier comparison base in Q3, but a much harder one in Q4, especially on the consumer-based business."
"So this is why we've maintained the 3% to 6%, which when we have done our detailed forecast for the full year, which has happened at the beginning of this month. We believe we have the capacity to maintain it. But as you know, there is still an uncertainty in H2 regarding the recessive scenario. So that's the reason why we've done it like that."-
— Eric Rondolat, Signify CEO, on July 29 earnings call
2. GE Lighting layoff plan
In March, GE Lighting, a Savant Company, announced that it will be closing lamp plants in Bucyrus, Ohio and Logan, Ohio. In recent days, the company filed paperwork with the state indicating that it will soon begin laying off 209 workers at the two locations.
GE Lighting stated that positions will be permanently eliminated beginning on or about September 30, 2022 with approximately 159 employees released on that date. Of the remaining positions, it is estimated that 34 will be eliminated by December 31, 2022, and the remainder eliminated by July 31, 2023.
Read the letter from GE Lighting »
3. New Lighting Color Research Lab
At UC Davis, the California Lighting Technology Center is establishing “The Color Lab” in collaboration with the Center for Mind and Brain to explore the impact of discrete color spectra on stress, mood, and alertness.
4. Rexel and WESCO Report Double-Digit Growth
Major electrical distribution companies, Rexel and WESCO, each recently reported their second quarter results.
Rexel
In the United States, sales stood at €3,034.6 million ($3.1 billion USD) in the first half of 2022, a 20.4% increase from the first half of 2021 on a constant and same-day basis, with a backlog remaining very important, up +81% year-onyear at end of June year on year, representing circa 3 months of sales. The performance was sustained by growth in all the three end-markets, especially in industrial market and, to a lesser extent, commercial. The Mountain Plains and Gulf Central regions, notably driven by Oil & Gas, benefited from a strong overall momentum. On a constant basis and same-day basis, Mayer's sales were up 17% on a more difficult base effect as Mayer recovered earlier from Covid in 2021.
WESCO
Compared to Q2 2021, overall sales increased 19% to $5.5 billion. Revenues in the Electrical & Electronic Solutions business segment (which includes most lighting and controls products) increased 21% to $2.3 billion.
5. Logistics Economic Indicator Points to Softening Market
Shipping firm Maersk, a barometer for global trade, warns of weak demand and warehouses filling up. Maersk said Wednesday that it expects a slowdown in global shipping container demand in 2022 amid weakening consumer confidence and supply chain congestion.
