Osram Announces Profit Warning and Lowers Its 2019 Forecast

On its way of transforming to a high-tech photonic company, Osram has been challenged by the weakening global market. The German company adjusted its annual forecast for fiscal year 2019 which ends by September 30, 2019.

Osram said the revenue of fiscal 2019 is expected to decline between 11 and 14 percent while the previous forecast was a revenue growth between 0 and 3 percent. The company also lowered is the range of its adjusted EBITDA margin to eight and ten percent from 12 to 14 percent. In addition, Osram expects a negative free cash flow between EUR 50 million to 150 million (US$ 56.15 million to 168.45 million) in comparison with the positive mid-double-digit million range as it anticipated previously.

According to Osram, the adjustment of annual forecast is due to “the continued market weakness in the automotive industry, in general lighting and in mobile devices,” which led to significant inventory buildups, particularly in China. Osram also noted that its business development is impacted by general economic slowdown as well as geopolitical uncertainties.

The German company has cut its profit guideline twice for fiscal 2018 and posted a warning in January for its fiscal 1Q19. In the latest announcement, Osram said its revenue of the second quarter of fiscal 2019 is expected to drop by 15 percent YoY with the Opto Semiconductors business unit affected the most due to underutilization.

Despite the forecast adjustment, Osram said it will continue its strategy with the focus on optical semiconductors, automotive and digital applications. Its developments in professional horticulture lighting and sensing technology for facial recognition also receive positive feedbacks.

Meanwhile, the company has been progressing the initiated sales of the European luminaires business and the US service business. In February, Osram confirmed that it has been in discussion with Carlyle and Bain Capital who are eyeing the buyout of Osram. But no further information was revealed in the recent announcement.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

 - Osconiq E 2835 CRI 90 (QD) expands ams OSRAM's portfolio of lighting solutions that provide very high quality in a new mid-power LED. - In-house Quantum Dot technology ensures outstanding efficiency values of over 200 lm/W, even at... READ MORE

San Jose, CA – July 13, 2021 – Lumileds today introduced its new LUXEON 2835 Commercial LEDs engineered and designed to support the growing demand for a high volume, high-efficacy mid-power LED to serve commercial indoor lighting a... READ MORE