OSRAM – Challenging market environment continues into Q2 FY19
Statement from the CEO, Dr. Olaf Berlien
Our second quarter developed in line with what we communicated end of March. The weakness in our core markets continues. Especially the downturn in the automotive segment leads to high inventories in the Chinese market. Together with a general downturn of the economy this is the reason we are facing a decline in sales for our second quarter.
In spite of these challenging environments our long-term strategy along the implementation of new applications in the LED segment stays intact. Our focus is on optical semiconductors, automotive and digital applications.
The board responds to the operational challenges systematically. Both our performance programs as well as the implementation of structural measures are in place and operate at full stretch.
This gives us confidence for the rest of the year and we confirm our adjusted full year targets.
Second quarter summary
• Revenue of €862m
• Adjusted EBITDA margin of 8.1%
• Extended cost and structural measures in place
Outlook for FY19
Revenue – Decline of comparable revenue between 11% and 14%
Adj. EBITDA margin – Adjusted EBITDA margin of 8% to 10%
Free Cash Flow – Negative Free Cash Flow between €-50m and €-150m
In mid-February, Osram announced that management was in closer talks with Bain Capital and The Carlyle Group about a possible takeover. The due diligence process continues.
You can read the full report here.