AMSTERDAM, Jan 24 - Dutch lighting company Signify
does not expect a big financial impact from possible
new U.S. import tariffs, its chief executive said on Friday.
Signify, like its competitors, has significant production in
China and Mexico, markets which U.S. President Donald Trump has
targeted for possible tariff increases.
"When we look at our Chinese imports to our U.S. business,
it's less than 20% of what we import," Eric Rondolat said on a
call with analysts after the company reported fourth quarter
earnings.
"We believe we will find a way to compensate through
footprint (changes) and price increases," he added.
Signify is the largest maker of lights globally by sales,
but its market capitalisation is far smaller than that of its
top U.S. rival, Acuity Brands ( AYI ).
In October, before Trump's election, Rondolat said the
company would consider shifting more of its assembly operations
out of China to markets such as India and Mexico if necessary,
though it would likely always purchase some components in China.
Rondolat said on Friday it was difficult to know how any new
tariffs would play out, but that the company had navigated
similar moves in 2018 and new tariffs could even present an
opportunity.
"We have an important part of what we produce in Mexico, but
less probably than other competitors ... we think our footprint
is better positioned," he said.