29. Juli 2020, 12:40 Uhr | Heinz Arnold
Osram's sales fell by almost 30 percent to 606 million euros. CEO Olaf Berlien is nevertheless confident.
And he can even see something good about the result: "EBITDA before special items was significantly better than expected at minus 27 million euros," the Osram writes in its press release on the second quarter results.
This means that Osram is doing much worse in the second quarter of 2020 - it is the third in Osram's fiscal year - than ams, which has acquired a majority stake in Osram. Instead of deep red figures, ams can report record sales in the second quarter of 2020 and also expects strong growth in the third quarter.
In line with the new majority situation, Osram Supervisory Board members Roland Busch, Frank H. Lakerveld and Arunjai Mittal have resigned from their positions. They are being succeeded by the independent management consultant Hans-Peter Metzler, ams Management Board member Thomas Stockmeier and ams Works Council member Johann Christian Eitner.
As expected, Osram's Automotive division was hardest hit by the drop in sales, but Opto Semiconductors is developing relatively positively. Across the company, free cash flow was "only minus 7 million euros" due to effective management of working capital.
"The success of our corona measures and our liquidity management is clearly reflected in our quarterly figures. In the third quarter we already achieved the total savings we had planned for the year as a whole," said Olaf Berlien, CEO of Osram. "In particular, our development in North America and China makes us confident that we will achieve our current full-year forecast despite all adversities."
As expected, the corona crisis left its deepest mark on the Automotive (AM) division in the third quarter. There, revenues declined by 35.7 percent compared to the previous year to 282 million euros. The continuing weak margin development in the Osram Continental joint venture also played a decisive role in this. A depreciation of 48 million euros was also recorded there.
Adjusted EBITDA for the entire Automotive segment was minus 23 million euros. The cash outflow was limited to 19 million euros. The decline in the Opto Semiconductors division was much less severe. Here sales fell by 19 percent to 297 million euros. Adjusted EBITDA was 36 million euros. The operating margin remained in the double-digit range at 12.2 percent. Free cash flow remained positive at EUR 24 million. The DI digital sector was significantly affected by declining sales in some areas, such as cinema lamps and stage lighting. As a result, sales fell by around 31 percent to Euro 159 million. Adjusted EBITDA was minus EUR 23 million. In contrast, free cash flow was clearly positive at EUR 17 million.
"The current final quarter of fiscal 2020 will continue to be dominated by the corona crisis," said Osram. Although the company is showing visible signs of recovery, particularly in Asia, the company is still in the process of making a significant contribution to the recovery. The production sites there are producing almost as much as before the pandemic began. But the economic recovery in Europe remains to be seen. Overall, the Management Board believes that it is well on the way to meeting the annual forecast adjusted in June.