Osram Licht adjusts fiscal 2018 forecast; additional restructuring measures

"Restrictions on trade and sales as well as planning risks affecting automotive manufacturers have created noticeable uncertainty. Current business performance is also affected by the postponement of projects by our customers in the areas of mobile devices and horticulture; implementation of these projects is now planned for fiscal year 2019", writes the German company in an ad-hoc release. In view of these developments, the Managing Board now expects a comparable revenue increase of 1.0 – 3.0 percent (previously: 3.0–5.0 percent) and adjusted EBITDA of approximately EUR 570–600 million (previously: approximately EUR 640 million) for fiscal year 2018. It was also decided to accelerate the measures already in place that are aimed at a sustained improvement in profitability. These measures have a number of objectives, including a noticeable reduction in overhead costs and reorganisation of the factory alliance. The Managing Board now expects the negotiations with the employee representatives on implementing these measures to be completed as early as July 2018. Additional measures are currently being prepared, including in procurement and in relation to improving efficiency in research and development.