Osram sees fifth consecutive quarter of growth

We had a solid first quarter. Despite the significant headwind from currency effects, we managed to generate further growth while maintaining high margins. From the current perspective, we expect to gain momentum in the second half of the fiscal year," said Olaf Berlien, CEO of OSRAM Licht AG. "The strong and sustained level of demand for our products shows that our expansion of capacity and investment in new technologies was absolutely the right decision because it is enabling us to improve opportunities for long-term growth," Berlien continued. At EUR 1.03 billion, the group's revenue on a comparable basis was up by 5% relative to the prior-year quarter. EBITDA adjusted for special items amounted to EUR 172 million, which was nearly the same level as a year earlier. The adjusted EBITDA-margin reached 16.7%. In November last year Osram opened its new plant in Kulim, Malaysia, in order to meet the high demand for LEDs, particularly those used in general lighting. Production ramp-up is going according to plan. It is expected that additional capacity of this Phase 1 investment will be realised by the end of the fiscal year. In fiscal year 2018, the company says it will continue to build on its foundations for the future. Osram budgets a revenue increase of between 5.5% and 7.5%. The EBITDA adjusted for special items is likely to be around EUR 700 million and will be influenced by factors such as currency effects, ramp-up costs for Kulim and increased capital expenditure on research and development, which adds up to a three digit million Euro amount.