When preliminary key figures were published at the end of March, the lighting company had forecast a decline in sales of around 15% for the second quarter and an adjusted EBITDA margin in the mid to higher single-digit range. As announced at that time, the decline was due in part to the continuing weakness of the automotive, general lighting and mobile device markets. This led to high inventory levels, particularly in China. In addition, the general economic slowdown is adversely affecting business development.
Net income was -€91 million due to transformation costs and an impairment charge in the controls business.
“In our 113-year history, we have repeatedly experienced challenging times, but each time we have emerged stronger than before. Our long-term strategy of implementing new applications in the LED sector remains intact. The focus is on optical semiconductors, automotive and digital applications,” said Olaf Berlien, CEO of OSRAM Licht AG.
In the past quarter, the Opto Semiconductors division recorded a decline in sales of around 18.8% on a comparable basis. This reflects not only the economic effects but also the weakness in the automotive industry and general lighting. High inventories in Asia further curbed development. Sales in the automotive division were 10.6% lower due to reduced expectations worldwide in the automotive industry. In the Digital division, sales fell by 8.5% due to the weakness in general lighting and the control gear business.
In mid-February, Osram announced that management was in closer talks with Bain Capital and The Carlyle Group about a possible takeover. The due diligence process continues. As communicated from the beginning, it remains to be seen whether an agreement will be reached.