After releasing few warnings in February and March, Osram finally unveiled the financial results of the second quarter of its fiscal 2019 ending March 31. The results went in line with what the company has expected with revenues decreased by 13.5% YoY to EUR862 million (US$965.14 million). The adjusted EBITDA fell by 56% YoY to EUR70 million (US$78.38 million) with an adjusted EBITDA margin dropped from 16.9% to 8.1%. The net loss came to EUR90 million (US$100.78 million).
Continuous weak growth in China along with ongoing trade conflicts have led to increasing inventories in supply chain, especially in China. These contributed to business decline of Osram’s fiscal 2Q19, as warned by the company.
Osram pointed out that macro environments continue to slow down, leading to the decline of global car sales, which impacted the company’s Automotive business unit. For Opto Semiconductors, Osram noted that all business lines declined due to continuing weakness of automotive, general lighting and mobile device market. High operating leverage and lower volumes also drove profitability down. Revenue of the Opto Semiconductors division fell by 18.8%YoY.
Olaf Berlien, CEO of OSRAM, said, “In spite of these challenging environments our long-term strategy along the implementation of new applications in the LED segment stays intact. Our focus is on optical semiconductors, automotive and digital applications.”
The German company announced in February that management was in closer talks with Bain Capital and The Carlyle Group about a possible takeover. In the latest press release, Osram said the discussion talking is still processing, it remains to be seen whether an agreement will be reached.
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