January 20, 2024
5 Things to Know: Week Ending January 20
A tale of two lighting trade shows. Plus, a $2 million streetlight settlement.
Here's a roundup of some of the week's happenings curated to help lighting people stay informed.
1. SoCal Trade Show Updates
Orange County: LightSpec West, a Southern California lighting event, is set to reconvene in 90 days. The inaugural LightSpec West occurred in fall 2022, and the event has recently updated its preliminary exhibitor list for the upcoming show.
Updated on Friday, the LightSpec West website now lists 30 exhibitors, showing a decrease from the 37 exhibitors cited in the previous list published on December 19.
The 2022 event, which was held in Downtown Los Angeles (DTLA), attracted 176 exhibitors fueled by event partnerships from several major lighting agents in the Southern California market. Notably, the three largest agents in the market have yet to commit to participating in this year's event. LightSpec West 2024 is scheduled to be held at Orange County’s Anaheim Convention Center on April 18-19.
DTLA: Next month in Los Angeles, the local section of the Illuminating Engineering Society will host its annual Wally Whitney Memorial Product Fair in DTLA on February 22. The event is expected to feature over 160 exhibitors, free food and barista coffee bars.
2 . How did Signify finish in 2023?
On Friday, January 26th, Signify, the global leader in lighting, is scheduled to release its financial results for the final quarter of 2023, as well as its full-year results ending December 31, 2023.
Previously in early December, Signify announced a strategic shift in its business model. The company plans to transition its business unit structure from a product category focus to an approach more focused on customer segments. The upcoming financial report will mark the last time the company uses its existing divisional structure, which includes Digital Products, Digital Solutions and Conventional categories. These divisions have been in place since 2020.
Ahead of the report Signify published an Analyst Consensus. This document indicated a median analyst prediction of €1,788 million for Q4 2023 revenue and a median full-year revenue for 2023 at €6,760 million. The expected adjusted EBITDA margin for the quarter is forecasted at 11.7%, with the annual margin anticipated at 9.9%.
Above: Signify Analyst Consensus - January 9, 2024
For context, Signify's performance in Q3 of 2023, the quarter preceding the upcoming report, recorded sales of €1,649 million and an adjusted EBITA margin of 10.7%.
It is important to note that the analyst consensus overview is compiled based on submissions from external sell-side analysts following Signify. The consensus estimates are solely the views of these analysts and do not reflect Signify’s opinions or forecasts.
3. Skanska writes off $195M, cites weak US office market
Skanska, a Sweden-based developer and builder, has taken impairment charges of approximately 2 billion Swedish Krona ($195 million) due to challenges in its U.S. commercial property portfolio, as reported by Construction Dive.
This decision follows low return-to-office rates in the U.S., significantly impacting the value of Skanska's assets. The writedowns will affect Skanska's fourth quarter earnings, with Chief Financial Officer Mangus Persson emphasizing the isolated nature of these impairments to certain segments of the business.
Next week, Inside Lighting will catch up with Richard Branch, Chief Economist at Dodge Construction Network, for "5 Big Questions." He will provide insights into the short- and long-term commercial office market in the U.S.
4. Chicago woman to get $2 million in light pole settlement
In 2019, Maya Kirk was seriously injured in downtown Chicago – near the corner of LaSalle and Lake Streets – when a rusting light pole collapsed on her. The City Council Finance Committee is anticipated to approve a $2 million settlement for Kirk, who sued the city citing negligence in maintaining light poles.
Kirk's case, settled in October 2023, highlights the ongoing issue of poorly maintained light poles in Chicago, a problem CBS 2 Investigators have reported since 2015. While still recovering, Kirk expressed her concerns about the dangers of decaying light poles, drawing attention to the risks they pose to public safety.
5. SDA Lighting & Controls makes another NJ move
High Tech Applications (HTA Lighting), a niche New Jersey-based lighting agent, is integrating into the operations of SDA Lighting & Controls, a New York City lighting agent, thereby enhancing SDA Lighting & Controls’ expansion efforts in northern New Jersey. This move is part of SDA Lighting & Controls' ongoing effort to strengthen its presence in the region.
HTA Lighting, having a specialized architectural lighting focus, operates in both Northern New Jersey and the New York City metropolitan area. The integration of HTA Lighting into SDA Lighting & Controls involves the transfer of certain HTA personnel and likely a significant portion, if not all, of its manufacturer partnerships to SDA.
The product offerings from HTA Lighting include a range of architectural lighting brands such as Designplan, Targetti and Ligman Lighting. These brands are listed on HTA's New Jersey line card, which may not be fully up-to-date, as the most recent version dates back to 2022. HTA's New Jersey portfolio features over 40 lighting lines. On the contrary, their presence on the New York side of the Hudson River appears more limited, with approximately 14 lines indicated on their website.
