Osram plans to sell electronics business

At the end of January, Osram significantly raised its outlook for the fiscal year thanks to extremely positive business developments and the rapid recovery of the automotive market in the first quarter. The company points to the effective measures that it took at an early stage to counter the corona crisis but also to the positive earnings trends in all reporting segments. The Semiconductor business in particular delivered excellent performance in the first quarter. Opto Semiconductors set a record in the past quarter with its highest adjusted EBITDA margin to date. “Our strategy is working. In recent years, Osram has taken steps to make itself crisis-proof. That’s why even during this corona pandemic our products are very successful,” says Olaf Berlien, CEO of OSRAM Licht AG, in a press release. “This is true for our automotive products, and especially for our semiconductors. Without the capacity of our plant in Kulim, we would not be able to meet demand at the moment. Within three years, Kulim has become an important pillar for Opto Semiconductors.” All three business units performed well in their markets in the first quarter of the new fiscal year. Even during the corona crisis, Automotive (AM) has been strengthening its leading position in retrofit and replacement lamps. AM achieved sales of EUR 474 million, a slight increase on a comparable basis; adjusted EBITDA increased considerably compared to the previous year at EUR 65 million. Opto Semiconductors (OS) in particular delivered glowing results in the first quarter of the year. With an adjusted EBITDA margin of over 31%, it posted an all-time record. This record margin clearly shows that the focus on high-tech in the automotive and general lighting sectors and the expansion of production capacity in Kulim and Regensburg were important decisions for the future. In the first quarter, OS also reported a comparable increase in sales of nearly five percent to EUR 356 million. The successful turnaround measures taken in the Digital (DI) business unit have further progressed. Despite the corona-related decline in sales in the past quarter, adjusted EBITDA was again more or less balanced and free cash flow was slightly positive. Compared to the previous quarter (Q4), adjusted EBITDA improved by EUR 6 million. In recent months, various options for developing the business areas within DI have been closely examined. As Osram continues to focus on high-tech and photonics, the company has decided to seek a new best owner for the segment which handles electronics and electronic power supplies within the business unit DI.