The Managing Board of OSRAM Licht AG decided today to adjust the forecast for fiscal year 2018 (continuing operations). The reasons for this are the uncertain macroeconomic conditions, particularly the weakness of the US dollar against the euro, and the slower business development in the first half of fiscal year 2018. Based on current exchange rates, a comparable revenue increase of 3-5% (previously: 5.5-7.5%) and adjusted EBITDA of ~ EUR640 million ($676.5 million dollars) are now forecast (the previous forecast was $839 million). Furthermore, OSRAM expects earnings per share (diluted) of EUR1.90-EUR2.10 ($2.28-$2.52) and a negative free cash flow of EUR50 million to EUR150 million ($60 million – $180 million) for fiscal year 2018 (which is unchanged).
In the second quarter of fiscal year 2018, based on preliminary results, OSRAM achieved revenue of EUR1.01 billion in its continuing operations (growth of 1.8 percent on a comparable basis), an adjusted EBITDA margin of 15.1 percent, and earnings per share (diluted) of EUR0.46. As expected, negative free cash flow amounted to EUR132 million owing to planned capital expenditure in the Opto Semiconductors business unit.
The ‘OSRAM future concept’ agreed upon with the employee representatives in summer 2017 is entering the next phase as planned. This future concept is designed to facilitate the orderly transformation of the employment structure at the German locations and in non-production functions. This should safeguard the company’s competitiveness and profitability over the long term. The Managing Board will now enter into further talks with the employee representatives on implementation of the necessary measures. According to preliminary estimates, these measures may result in an extraordinary expense before tax of EUR60-70 million. It is not currently possible to predict precisely how long the negotiations with the employee representatives will take. The adjusted outlook for earnings per share (diluted) for the current fiscal year 2018 therefore does not reflect this extraordinary expense.
OSRAM will publish its preliminary results for the second quarter on May 3, 2018 and the final results for both the second quarter and the first half of fiscal year 2018 on May 8, 2018.
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