Osram has decided to adjust the forecast for fiscal year 2018. The reasons for this are the mixed macroeconomic conditions, particularly the weakness of the US dollar against the euro, and the muted course of business in the first half of fiscal year 2018.
Based on current exchange rates, a comparable revenue increase of 3 to 5% (previously: 5.5–7.5%) and adjusted EBITDA of approximately €640 million (previously: approximately €700 million) are now forecast. Furthermore, OSRAM expects earnings per share (diluted) of €1.90 to €2.10 (previously: €2.40–€2.60) and negative free cash flow of €50 million to €150 million (unchanged) for fiscal year 2018.
In the second quarter of fiscal year 2018, based on preliminary results, Osram achieved revenue of €1.01 billion in its continuing operations (growth of 1.8% on a comparable basis), an adjusted EBITDA margin of 15.1%, and earnings per share (diluted) of €0.46. As expected, negative free cash flow amounted to €132 million owing to planned capital expenditure in the Opto Semiconductors business unit.
Osram is now beginning to implement a new concept for its German sites, which was agreed upon with the union IG Metall and works council last summer. With this, competetiviness and profitability should be secured in the long term. Additionally, the board is now entering into further talks with the labor representatives.