Osram has announced its decision to divest its luminaires business. As part of a strategic realignment, Osram says it will focus on growth markets in high-tech fields.
“Thanks to numerous measures, the earnings position of the Lighting Solutions business unit has stabilised significantly, therefore allowing us to initiate an organised sales process,” said Osram CEO Olaf Berlien. “This will result in a more strategic focus with regards to applications with high growth potential.”
Osram has just reported Q3 for its 2018 fiscal year, saying that the company “held its ground in a difficult market environment”. Revenue remained consistent with the prior year’s €1.02 billion but earnings of €133 million were significantly down; the adjusted EBITDA margin was 13.1 percent. Osram blamed foreign exchange fluctuations, higher R&D expenses, and ramp-up costs for new businesses. The general economic slowdown and weak demand in the automotive industry also created problems in Osram’s Opto Semiconductors (OS) and Specialty Lighting (SP) segments.
The strategic revision of the Lighting Solutions and Systems (LSS) business unit – including the decision to exit from luminaires – means that LSS should now be “on the right track”.
Osram downgraded its forecasts for FY 2018 to a revenue increase of 1 to 3 percent (previously it was estimating 3 to 5 percent) and earnings of €570 to 600 million (previously €640 million).