By Andrea Figueras
Zumtobel, the Austrian lighting company, has reported a decrease in net profit and revenue for its first fiscal quarter. The decline is attributed to a sharp decrease in its components division and foreign-exchange effects.
For the May-to-July quarter, net profit amounted to 9.9 million euros ($10.7 million), compared with EUR10.9 million in the same period last year. This marks a decrease of 9%.
Revenue also saw a drop of 9%, falling to EUR285.6 million. Additionally, EBIT declined by 24% to EUR14.5 million.
Factors Affecting Revenue
The overall revenue figure was impacted by both foreign-exchange effects and a decline in the components division. CEO Alfred Felder expressed surprise at the significant drop of over EUR26 million in the components segment revenue, noting that there are no signs of recovery in this business as customer warehouses remain well stocked.
Regional Sales Performance
Zumtobel reported lower sales in most regions, particularly in Asia-Pacific, specifically China and Australia. However, the company experienced revenue growth in the region comprising Germany, Austria, and Switzerland.
Zumtobel has maintained its recently downgraded revenue forecast for the fiscal year ending in April. The company expects a decline in the mid-single digit percentage range. The estimated EBIT margin remains between 3% and 6%.