ams OSRAM lowers 4Q outlook, extends efficiency program
Austrian semiconductor manufacturer ams OSRAM has revised its fourth-quarter revenue outlook downward due to seasonal mix effects and ongoing market uncertainties heading into 2025.
In the third quarter of 2024, ams OSRAM reported revenues of EUR 881 million, landing within the company’s guided range of EUR 830–930 million. This marked an 8% sequential increase, primarily driven by the ramp-up of new semiconductor products for consumer handheld applications and the seasonal high of LED products.
Year-over-year, revenues declined slightly by 3%, attributable to the Lamps & Systems (L&S) segment. Meanwhile, the semiconductor business remained stable, reporting EUR 647 million in Q3 revenues compared to EUR 648 million in the same quarter last year.
“We are progressing faster with implementing our strategic efficiency program ‘Re-establish the Base’ as planned. Given that cyclical weakness in key markets persists, further cost savings are required to sustain our trajectory towards industry benchmarks while continuing our investment to exploit structural growth paths in our semiconductor target markets. Therefore, we are stepping up our ‘Re-establish the Base’ program by another 75 million Euro run-rate savings – to be realised by the end of 2026,” says Aldo Kamper, CEO of ams OSRAM in a press release.
The expanded program will affect over 500 non-production employees, with approximately one-third of these roles planned for relocation to best-cost countries. The company anticipates additional transformation costs of EUR 40 million, primarily in 2025.
Q4 2024 Outlook
In Q4 2024, demand for automotive semiconductor products is expected to remain flat, reflecting uncertainties in the global automotive supply chain. Industrial and medical markets are anticipated to show muted demand in certain segments. Seasonal slowdowns are projected for semiconductor products used in consumer handheld devices and horticulture applications.
Conversely, the automotive aftermarket halogen lamps business is expected to see a seasonal uptick as the Northern Hemisphere enters its shorter daylight season.
The company forecasts Q4 revenues to range between EUR 810–910 million, with adjusted EBITDA projected at 15%–18%, impacted by lower revenues and cost headwinds.
