Weak start into fiscal year 2019 for Osram Licht

During the company’s first quarter of fiscal year 2019, the revenue from continuing operations of OSRAM Licht AG amounted to EUR 828 million according to preliminary figures (prior-year quarter: EUR 939 million), down around 15% on a comparable basis (prior-year quarter: +5.7%). The adjusted EBITDA margin is expected to be 11.3% (prior-year quarter: 18.5%). These figures no longer include the business activities of Sylvania Lighting Solutions in the U.S.A., which has already been sold, nor the European luminaire business, which is up for sale. Both are accounted for as discontinued operations from the first quarter of the fiscal year 2019 onwards, the company clarifies in a press update. The weak operating performance is reflected in all three business units. For example, the Opto Semiconductors unit recorded a 16.9% decline in revenue on a comparable basis in the first quarter. The reason for the disappointing revenue development is the accelerated market decline, especially in December 2018. Particularly affected were the core markets Automotive, General Lighting and Mobile Devices. Foremost, the ongoing trade conflicts, the weak growth in China and the general political uncertainties had a negative impact. As a result, visibility for the quarters ahead will remain significantly low. The Managing Board has initiated a number of countermeasures, in particular to increase revenue; considerable structural measures have also been initiated in the Opto Semiconductors business unit, the company says without going into further detail. This is intended to secure the guidance for the fiscal year. However, the achievement of the guidance is also subject to a revival in order intake in the months ahead.