MUNICH — The management board of Osram has decided to divest its luminaires business. “Thanks to numerous measures, the earnings position of the Lighting Solutions business unit has stabilized significantly, therefore allowing us to initiate an organized sales process. This will result in a more strategic focus with regards to applications with high growth potential,” said Olaf Berlien, CEO of OSRAM Licht AG. Talks will be held with interested parties for the luminaires business. The management board will provide an update on the progress of strategic plans for the company at the Capital Markets Day in November.
As part of its strategic realignment, Osram is refining its positioning with an increased focus on the growth markets in high-tech fields. The financial figures of the Lighting Solutions (LS) business unit, combined with the contribution of the Digital Systems business unit, are captured within the Lighting Solutions & Systems (LSS) reporting segment. The largest LS location is Traunreut, Germany, where luminaires for industrial and commercial sites and street and stadium lighting, for example, are produced.
Meanwhile, Osram released its Q3 FY18 Earnings report today:
“Our financial figures in the past quarter were impacted by challenging market developments and project delays of our customers. Just as in previous quarters, negative currency effects also impacted our results,” Berlien stated. “For this reason, we have taken the appropriate countermeasures to improve our efficiency. Furthermore, we are focusing our product portfolio even more towards growth markets. The decision to sell our luminaires business is an important step on this path”
Summary financial performance Q3 FY18:
- Q3 FY18 comparable revenue growth flat; OS and SP with single-digit growth
- Q3 FY18 adjusted EBITDA margin @ 13.1%; negative impact from FX of 170bps and from R&D of 110bps
- Free Cash Flow positive with €28m, mainly driven by reduced capex at OS as expected
- Q3 FY18 reported EPS at 33 Eurocents; adjusted EPS at 49 Eurocents
- Special Items in Q3 FY18 EBITDA at €-19m – as expected
Summary:
- The alignment of our business strategy alongside important mega-trends is right on the mark. We continue to focus on hightech markets.
- We are carefully monitoring current market developments. Moreover we have taken appropriate countermeasures.
- Finally, we are sharpening our portfolio with the sale of the luminaires business. This will enable us to focus on semiconductor, automotive and market opportunities in digitalization in the future.