“Overall, we can look back on a good quarter,” said Olaf Berlien, Chief Executive Officer of OSRAM Licht AG. “Our current priority is the realignment of the company, which we are pursuing at full speed. The carve-out of our lamps business is in this respect just the beginning of the path toward a new Osram, which will focus on connected and smart lighting.”
Osram continued to show a good profit performance in the third quarter of fiscal 2015. EBITA excluding special items rose 24 percent from a year earlier to €129 million, translating into a margin of 9.5 percent. The development was particularly driven by cost savings as well as positive currency effects. The reported EBITA margin reached 7.4 percent. Revenue increased twelve percent to almost €1.4 billion due to the weakness of the euro against key currencies and the acquisition of Clay Paky. On a comparable basis, i.e. adjusted for portfolio and currency effects, revenue remained almost stable with a decline of around one percent. The revenue share of LED-based products and solutions was 44 percent in the third quarter. Net income rose to €64 million. Osram confirms the outlook for fiscal 2015 as updated in April. After the supervisory board of OSRAM Licht AG recently unanimously approved the carve-out of the general lighting lamps business, the managing board confirms the goal to complete the carve-out by the spring of 2016.
Outlook for Fiscal 2015
Osram confirms the outlook for fiscal 2015 as updated in April. The managing board thus expects revenue to be on the level of fiscal 2014 on a comparable basis. The adjusted EBITA margin is expected to be above 9.0 percent. In addition, the managing board anticipates both net income and return on capital employed (ROCE) to decrease sharply in the current fiscal year due to an increase in transformation costs. Free cash flow is expected with a positive triple-digit million euro figure in fiscal 2015 but to stay below the prior-year level. Based on the outlook for fiscal 2015 and Osram’s midterm prospects, the managing board intends dividend continuity with €0.90 per share also for fiscal 2015.
Highlights in the third quarter
Osram again gave an impressive demonstration of its ability to create innovation in the third quarter. At this year’s Lightfair trade show in New York City, the company’s LED lighting solution OmniPoint was recognized with an Innovation Award for the most innovative product of the year. OmniPoint is a complete lighting solution in the form of a single LED downlight installed in the center of the room. The customer uses a tablet computer to define the required light output and illumination direction for any given situation. Such innovations not only make a company stand out from the crowd – they are also highly appreciated by customers. Another good example in this respect is laser light. After the first cars from Audi and BMW were equipped with Osram laser modules last year, the volume production of such modules has now been running at Osram’s Herbrechtingen plant since May. Customers continue to be interested in this technology as laser light illuminates the road significantly further than previously used light sources and therefore increases safety on the road. Another future technology in the automotive segment is organic light-emitting diodes (OLED), which is also likely to become popular. As a leading provider, Osram aims to be represented on the road with a series OLED product from 2016. The company is also setting standards in the non-visible lighting segment: The first smartphone that can be unlocked by iris scanning with the aid of Osram infrared technology recently went on sale in Japan. In June, Osram also won a well-respected award in Germany for the development of this technology.