© Osram Business | November 09, 2020
Osram manages to keep operating margin stable during 2020
Osram has come through the Year of Corona rather well thanks to early and efficient measures. “We acted early and consistently. We have protected both our employees and our production. This has paid off. Our free cash flow was positive in the last fiscal year at twelve million euros. We are particularly proud of this,” said Olaf Berlien, CEO of OSRAM Licht AG.
Despite a comparable revenue decline of almost 14%, the adjusted EBITDA margin remained stable at the previous year’s level of over 8%. The measures taken have all progressed as planned. The net result has been impacted by the fall in revenue due to the crisis, the planned costs for the transformation and for depreciation relating to the Osram Continental joint venture. However, the current trend in incoming orders for semiconductor business is positive. The semiconductor business of the Opto Semiconductors (OS) unit contributed in particular to this development. The company says that streamlining of the product portfolio has had a positive impact here. Because of corona, revenue fell by around 9% to EUR 1.34 billion, whereas the adjusted EBITDA margin climbed to more than 20%. Automotive business (AM) was more impacted by the economic effects of the pandemic. Revenue fell by 14% to EUR 1.59 billion. Adjusted EBITDA was around EUR 76 million. Adjusted EBITDA margin for the automotive segment as a whole was about 5%. This reflects dilution effects from Osram Continental. Its business is to be returned to the parent companies and is planned to be developed positively. Osram says that this will also significantly improve the profitability of the automotive segment. The Digital (DI) unit was even worse affected, with revenue falling by one fifth to EUR 742 million. As a result, adjusted EBITDA was negative at minus EUR 28 million. Encouraging developments in the fourth quarter The two major business segments, Opto Semiconductors and Automotive, indicate improvements in the fourth quarter of the fiscal year. Profitability increased accordingly in both segments. The Opto Semiconductors unit even achieved an adjusted EBITDA margin of roughly 22%. The company says that there was a noticeable upturn in the automotive market, which is an important one for Osram. Overall, the situation has improved significantly in the company's core markets in recent months. For the 2021 fiscal year, Osram expects comparable revenue growth of between six and ten percent, an adjusted EBITDA margin of 9% to 11%, and free cash flow in the neutral to low positive double-digit million euro range. This forecast is based on the assumption that the effects of the COVID-19 pandemic will be overcome in the course of the fiscal year 2021.
Motorola secures chip supply with GlobalFoundries deal The US semiconductor foundry has entered into a long-term agreement to safeguard the supply of chip solutions for Motorola Solutions' radios, which are widely used by public safety, critical infrastructure and enterprise organisations.
Foxconn and Yageo JV invests in Taiwan MOSFET manufacturer Hon Hai Technology Group (more commonly know as Foxconn) and Yageo Group have – via their joint venture XSemi – invested NTD 2.89 billion (EUR 91.6 million) in Taiwanese MOSFET manufacturer Advanced Power Electronics Corp.
Sponsored content by FusionManufacturers Reassess their Supply Chains Prevailing obstacles since the COVID-19 Pandemic in 2020 have manufacturers reassessing their supply chain strategies. The following major disruptions that occurred entering 2022 added to existing setbacks, or created new ones altogether:
Nexperia and Kyocera to develop GaN automotive power modules Nexperia and Kyocera AVX Components (Salzburg) GmbH, have entered into a partnership with a focus on power components – the companies aims to jointly developing GaN applications for electric vehicles.
Intel invests $700 million in new Oregon mega lab The US chipmaker plans to invest more than USD 700 million for a 200,000 square-foot, research and development mega lab focused on data center technologies and addressing areas such as heating, cooling and water usage.
Obsolescence management cannot be an afterthought “Obsolescence has always existed. However, it usually only becomes really critical for companies when the exception mutates into the norm. And in recent years we have unfortunately experienced this unwanted development not only with semiconductor chips, but increasingly with many other components, materials and raw materials,” says IIOM President and COGD Chairman Dr Wolfgang Heinbach.
Tower record 1Q22 revenues of $421 Million, a 21% YoY Tower Semiconductor reported first quarter 2022 revenue of USD 421 million, an increase of 21% compared to USD 347 million in the first quarter of 2021.
Gallium Semiconductor opens its Nijmegen R&D center Gallium Semiconductor has officially held the grand opening of its European R&D center in a ceremony in Nijmegen, the Netherlands.
Ferrotec to add manufacturing capacity with new plant in Malaysia Ferrotec, a global supplier of materials, components, and precision system solutions, is establishing a new manufacturing facility at Kulim Hi-Tech Park, Kedah, facilitated by the Malaysian Investment Development Authority (MIDA).
Skeleton targets the Polish market – teams up with ZPUE Supercapacitor specialist, Skeleton Technologies, and ZPUE, a Polish manufacturer of electrical devices for electrical power distribution utilities, have entered into a commercial agreement to provide energy storage solutions to the Polish market.
Texas Instruments breaks ground $30 billion investment The semiconductor manufacturer has broken ground on its new 300mm semiconductor wafer fabrication plants in Sherman, Texas – an investment set to create as many as create as many as 3,000 jobs.
Sponsored content by Proval ServiceSince 25 years your partner for SMT stencils and solder pallets. 25 years of experience makes Proval Service not just a supplier but your trustful and grounded partner to support you with SMT stencils and solder pallets. A qualified and unite team can satisfy every customer's need during the whole process.
ERP partners with Flip to fulfill EOL and Obsolete component solutions Flip Electronics has signed a franchised distributor partnership agreement with ERP Power (ERP) to distribute its End-of Life (EOL) semiconductor products.
Foxconn and DNeX build and operate wafer fab in Malaysia Dagang NeXchange Berhad (DNeX) and Foxconn subsidiary Big Innovation Holdings (BIH), plan to set up a joint venture company to build and operate a new 300mm wafer fab in Malaysia.
Imec and semiconductor partners target greener chip manufacturing Nanoelectronics research and innovation center, imec, says that it has managed to pool together stakeholders from the semiconductor value chain – from companies such as Apple and Microsoft, to suppliers, including ASM, Kurita, SCREEN and Tokyo Electron – to participate in its Sustainable Semiconductor Technologies and Systems (SSTS) research program.
SiPearl reaches milestone – 100 employees The European chip designer has exceeded 100 employees across its six sites in France (Maisons-Laffitte, Grenoble, Massy, Sophia Antipolis), Germany (Duisburg) and Spain (Barcelona).
Renesas to convert closed factory to 300mm wafer fab Renesas plans to conduct a JPY 90 billion (EUR 664 million) investment in its Kofu factory, located in Kai City, Yamanashi Prefecture, Japan. The company closed the factory back in October 2014, but now intends to reopen the fab in 2024 as a 300mm wafer fab.
Arrow names Jörg Strughold as president EMEA components Arrow Electronics announces that Jörg Strughold will take over as president of its components business in EMEA. He succeeds Martin Bielesch who has decided to leave the company.
€14 billion to attract semiconductor players to Germany EUR 14 billion in state support is the German governments new strategy to attract more chipmakers to the country.
10 different companies have expressed interest in Toshiba Back in April 2022, Toshiba Corporation announced that it had resolved to solicit proposals on strategic alternatives from potential investors and sponsors. The Japanese company is seeking to enhance its corporate value and has since the announcement been holding discussions with the potential partners.
TDK expands with new MLCC production site in Japan Japanese TDK Corporation says that it will construct a new production building on the premises of the Kitakami Factory – located in Kitakami city, Iwate prefecture, Japan – in order to to enhance the company's MLCC production.
Avnet breaks ground on German expansion In order to better serve its customers’ local and global needs, Avnet is expanding in two locations in Germany. Avnet Embedded broke ground on a new manufacturing site in Eschbach and Avnet EMEA plans to build its third European logistics centre in Bernburg.
Viettel & Qualcomm team up on 5G infrastructure development Viettel Group and Qualcomm Technologies plans to collaborate and develop a next-generation 5G Radio Unit (RU) with massive MIMO capabilities and distributed units (DUs). This focuses on helping to expedite the development and roll-out of 5G network infrastructure and services in Vietnam and globally.
Applied Materials opens Montana expansion – create 200 new jobs The company has opened its latest expansion in Montana, a new semiconductor manufacturing center set to create 200 jobs in the Flathead Valley.
How to easily select the right frequency generation component Question: What is the right frequency generation component for my application?
Bell Semiconductor is suing companies left and right In late April, Bell Semiconductor, a Pennsylvania-based technology and intellectual property licensing company, filed lawsuits against Micron, Infineon, Nvidia and seven other companies alleging infringement of one of its patents.
Can pre-owned equipment be the way out of the shortage? The global semiconductor supply chain remains under immense pressure. However, major investments are being made to increase capacity and fortify the supply chain for the future – but we wont feel the effect of these investments for years. Adding to the issue, there is not enough chips for the chipmaking machines.
CN Rood takes over ABtronix Test and measurement equipment supplier, CN Rood, expands its position in both Scandinavia and the Belelux via the acquisition of ABtronix, professional T&M equipment.Load more news