ams OSRAM Continues Healthy Financial Performance in 1Q 2022

ams OSRAM reported positive first quarter group financial results.

“Our business continued to perform well in the first quarter where we delivered results above the midpoint of our guidance range. As supply chain and end market imbalances remain a key influence, our automotive and industrial & medical businesses showed a very positive performance and our consumer business provided a strong contribution fully matching expectations,” said Alexander Everke, CEO of ams OSRAM.

“Our programs for integration and synergy creation are fully on track and I am pleased to see the positive momentum they are creating for our business. As part of these plans, we continue to move ahead in re-aligning our business portfolio. In the quarter we already announced the disposal of the automotive lighting systems business AMLS which was established following the dissolution of the OSRAM Continental joint venture in the fourth quarter 2021. In addition, we just closed the disposal of the horticulture lighting systems business Fluence as expected. We are now focused on implementing the remaining portfolio re-alignments and disposals as communicated,” Everke added.

“Tightness in chip supply and imbalances in multiple supply chains remain at the center of developments in our markets and are not restricted to the automotive market. In light of this situation our business demonstrated a robust operational performance in the quarter. We do not expect these imbalances to be resolved quickly, while recent additional end market volatility and global market uncertainties are adding to a demanding environment going forward,” Everke concluded.

First quarter group revenues were €1,246 million, up 1% sequentially compared to the fourth quarter 2021 and down 3% compared to same quarter 2021 (first quarter 2022 USD 1,394 million). Adjusted group gross margin for the first quarter 2022 was 33%, unchanged from the fourth quarter and down from 35% for the same quarter 2021. The first quarter adjusted group result from operations (EBIT) was €126 million or 10% of revenues compared to €118 million or 10% for the fourth quarter and €143 million or 11% of revenues for the same period 2021 (unadjusted: €40 million or 3% of revenues for the first quarter).

First quarter group operating cash flow was €147 million while group free cash flow reached €34 million. Group net debt was €1,853 million on 31 March 2022, translating into a group leverage of 2.0x net debt/adjusted EBITDA.