05.03.23
ams OSRAM reports first quarter 2023 financial results in line with the company’s expectation range. First quarter revenues of €927 million and adjusted EBIT margin of 5.4% are in line with guidance range.
“I am excited to return to the optical world and am impressed with the progress of our combined company over the last years,” said Aldo Kamper, CEO of ams OSRAM. “Our broad and deep technological competence combined with a highly motivated team is an excellent basis for further innovation and market penetration. We have now completed all communicated disposals of businesses outside of our strategic focus areas and our synergy creation remains on track.
“However, our markets continue to be demanding and unfavorable demand trends are impacting our business which is reflected in our first quarter results and our outlook,” Kamper added.
ams OSRAM delivered first quarter revenues and adjusted operating margin in line with its guidance and reflecting the continued difficult market environment. The demand situation in important product areas remained unfavorable, particularly due to macro-economic trends, creating a negative impact on profitability.
At the same time, ams OSRAM benefitted from seasonal strength in the automotive aftermarket and saw stabilizing trends in automotive inventory adjustments at the end of the quarter. The consumer business showed a very muted performance given both year-on-year and sequential volume weakness while several industrial markets saw the expected lower sequential demand.
With the last closings in March and April, ams OSRAM has completed all communicated disposals of businesses outside of its strategic focus and concluded the planned portfolio re-alignment following the acquisition of OSRAM. Including proceeds received in the first and current quarter, ams OSRAM expects a cash inflow from disposal proceeds of high double-digit €million in 2023. For all disposal transactions since 2021, expected total proceeds amount to close to €600 million. As a result of the last closing, second quarter revenues will reflect a final significant sequential deconsolidation effect of around €80 million
At the end of March, ams OSRAM had achieved €305 million of synergies and savings from its integration programs, against one-time integration costs of around €190 million so far. The synergy creation continues to progress as planned and ams OSRAM is confident to realize the remaining expected synergies towards its target of €350 million by the second quarter 2024
ams OSRAM recorded a strong sequential increase in capital expenditures in the quarter as it invests significantly into manufacturing capabilities for the long-term. These expenditures were in line with plans and particularly driven by its industry-first 8” LED front-end facility under construction in Malaysia. Construction of the facility continues to progress.
“I am excited to return to the optical world and am impressed with the progress of our combined company over the last years,” said Aldo Kamper, CEO of ams OSRAM. “Our broad and deep technological competence combined with a highly motivated team is an excellent basis for further innovation and market penetration. We have now completed all communicated disposals of businesses outside of our strategic focus areas and our synergy creation remains on track.
“However, our markets continue to be demanding and unfavorable demand trends are impacting our business which is reflected in our first quarter results and our outlook,” Kamper added.
ams OSRAM delivered first quarter revenues and adjusted operating margin in line with its guidance and reflecting the continued difficult market environment. The demand situation in important product areas remained unfavorable, particularly due to macro-economic trends, creating a negative impact on profitability.
At the same time, ams OSRAM benefitted from seasonal strength in the automotive aftermarket and saw stabilizing trends in automotive inventory adjustments at the end of the quarter. The consumer business showed a very muted performance given both year-on-year and sequential volume weakness while several industrial markets saw the expected lower sequential demand.
With the last closings in March and April, ams OSRAM has completed all communicated disposals of businesses outside of its strategic focus and concluded the planned portfolio re-alignment following the acquisition of OSRAM. Including proceeds received in the first and current quarter, ams OSRAM expects a cash inflow from disposal proceeds of high double-digit €million in 2023. For all disposal transactions since 2021, expected total proceeds amount to close to €600 million. As a result of the last closing, second quarter revenues will reflect a final significant sequential deconsolidation effect of around €80 million
At the end of March, ams OSRAM had achieved €305 million of synergies and savings from its integration programs, against one-time integration costs of around €190 million so far. The synergy creation continues to progress as planned and ams OSRAM is confident to realize the remaining expected synergies towards its target of €350 million by the second quarter 2024
ams OSRAM recorded a strong sequential increase in capital expenditures in the quarter as it invests significantly into manufacturing capabilities for the long-term. These expenditures were in line with plans and particularly driven by its industry-first 8” LED front-end facility under construction in Malaysia. Construction of the facility continues to progress.