11.03.22
ams OSRAM reports third quarter 2022 group financial results.
“We recorded solid results including sequential revenue growth for the third quarter as our business performed fully in line with our previous guidance,” said Alexander Everke, CEO of ams OSRAM. “We continue to see a demanding market situation in several end markets in an environment of slowing macro-economic momentum globally. Despite these unfavorable trends our automotive, industrial, and medical businesses offered a solid performance in the quarter while our consumer business provided good contributions to group results.
“Looking forward, we are excited that, supported by excellent customer engagement, our strategic development and industrialization program for a leading smallest structure size microLED technology and the construction of our industry-first 8” LED front-end fab are advancing as planned,” Everke said.
“We have reached the mid-point of the planned synergy creation period and I am glad to confirm that we have created 70% - or €245 million - of the total expected synergies and savings so far which are fully in line with our plans,” Everke noted. “We are equally successful in advancing our integration programs as planned and they remain a key priority as we move towards completing the integration. We are also in the final phase of the planned disposals and expect total proceeds from the disposals of more than €550 million. We now look forward to closing the last two already signed transactions, one of which is expected to close this quarter, as well as completing the last smaller-scale disposal. All in all, we continue to realize our targets related to the acquisition and integration of OSRAM Licht AG (OSRAM).”
Third quarter group revenues were €1,213 million, up 3% sequentially compared to the second quarter 2022 and down 6% compared to same quarter 2021, influenced by deconsolidation effects.
Adjusted group gross margin for the third quarter 2022 was 29%, down from 32% for the second quarter and down from 34% for the same quarter 2021. The third quarter adjusted group result from operations (EBIT) was €91 million or 8% of revenues compared to €104 million or 9% for the second quarter and €133 million or 10% of revenues for the same period 2021 (unadjusted: €-327 million or -27% of revenues for the third quarter).
Third quarter adjusted group net result was €47 million compared to €-54 million for the second quarter and compared to €10 million for the same quarter 2021 (unadjusted: €-370 million for the third quarter).
Third quarter group operating cash flow was €151 million while group free cash flow was solid with €56 million. Group net debt was €1,595 million on Sept. 30, 2022, translating into a group leverage of 1.75x net debt/adjusted EBITDA.
The group’s Semiconductors segment provided the most relevant contribution to group results in the third quarter at 67% of group revenues. The semiconductor automotive business recorded a solid performance in the quarter in line with previous expectations.
The Lamps & Systems (L&S) segment saw third quarter results in line with expectations contributing 33% of group revenues. Pro-forma third quarter segment revenues for retained L&S business after completion of all previously announced disposals, i.e. deconsolidation of all closed and to-be-closed disposals, were 26% of same basis group revenues or €281 million.
For the fourth quarter 2022, ams OSRAM expects group revenues of €1,150-€1,250 million, based on currently available information and exchange rates.
“We recorded solid results including sequential revenue growth for the third quarter as our business performed fully in line with our previous guidance,” said Alexander Everke, CEO of ams OSRAM. “We continue to see a demanding market situation in several end markets in an environment of slowing macro-economic momentum globally. Despite these unfavorable trends our automotive, industrial, and medical businesses offered a solid performance in the quarter while our consumer business provided good contributions to group results.
“Looking forward, we are excited that, supported by excellent customer engagement, our strategic development and industrialization program for a leading smallest structure size microLED technology and the construction of our industry-first 8” LED front-end fab are advancing as planned,” Everke said.
“We have reached the mid-point of the planned synergy creation period and I am glad to confirm that we have created 70% - or €245 million - of the total expected synergies and savings so far which are fully in line with our plans,” Everke noted. “We are equally successful in advancing our integration programs as planned and they remain a key priority as we move towards completing the integration. We are also in the final phase of the planned disposals and expect total proceeds from the disposals of more than €550 million. We now look forward to closing the last two already signed transactions, one of which is expected to close this quarter, as well as completing the last smaller-scale disposal. All in all, we continue to realize our targets related to the acquisition and integration of OSRAM Licht AG (OSRAM).”
Third quarter group revenues were €1,213 million, up 3% sequentially compared to the second quarter 2022 and down 6% compared to same quarter 2021, influenced by deconsolidation effects.
Adjusted group gross margin for the third quarter 2022 was 29%, down from 32% for the second quarter and down from 34% for the same quarter 2021. The third quarter adjusted group result from operations (EBIT) was €91 million or 8% of revenues compared to €104 million or 9% for the second quarter and €133 million or 10% of revenues for the same period 2021 (unadjusted: €-327 million or -27% of revenues for the third quarter).
Third quarter adjusted group net result was €47 million compared to €-54 million for the second quarter and compared to €10 million for the same quarter 2021 (unadjusted: €-370 million for the third quarter).
Third quarter group operating cash flow was €151 million while group free cash flow was solid with €56 million. Group net debt was €1,595 million on Sept. 30, 2022, translating into a group leverage of 1.75x net debt/adjusted EBITDA.
The group’s Semiconductors segment provided the most relevant contribution to group results in the third quarter at 67% of group revenues. The semiconductor automotive business recorded a solid performance in the quarter in line with previous expectations.
The Lamps & Systems (L&S) segment saw third quarter results in line with expectations contributing 33% of group revenues. Pro-forma third quarter segment revenues for retained L&S business after completion of all previously announced disposals, i.e. deconsolidation of all closed and to-be-closed disposals, were 26% of same basis group revenues or €281 million.
For the fourth quarter 2022, ams OSRAM expects group revenues of €1,150-€1,250 million, based on currently available information and exchange rates.
