Osram’s performance in the second fiscal quarter was as expected. Revenue on a comparable basis fell by 13.5 percent to 862 million euros in the period from January to the end of March. The adjusted EBITDA margin was 8.1 percent.
As announced at that time, the decline was due in part to the continuing weakness of the automotive, general lighting and mobile device markets. This led to high inventory levels, particularly in China. In addition, the general economic slowdown is adversely affecting business development.
Adjusted for special items, EBITDA at EUR 70 million was 56 percent below the prior-year figure, while net income was EUR minus 91 million due to transformation costs and an impairment charge in the controls business. As communicated ad hoc at the end of March, the Management Board is responding consistently to the development of the markets and plans savings of over 200 million euros by 2021.
“In our 113-year history, we have repeatedly experienced challenging times, but each time we have emerged stronger than before. Our long-term strategy of implementing new applications in the LED sector remains intact. The focus is on optical semiconductors, automotive and digital applications” said Olaf Berlien, CEO of OSRAM Licht AG.
Read the full report here.