Osram with Strong Start into Fiscal 2016

Osram had a successful start into the current fiscal year that started in October 2015. Revenue in the first quarter rose 6% from a year earlier to almost €1.48 billion. On a comparable basis, i.e., adjusted for portfolio and currency effects, revenue remained stable. EBITA1 excluding special items rose 16% to €175 million, translating into a margin of 11.8%.
 
“We are very satisfied with the first quarter and optimistic about how the rest of the fiscal year will progress. The results affirm the path we have decided to take and which we will continue to pursue. The measures we started last year have set the course for our innovation and growth initiative. This initiative will make our three strategic pillars even more powerful and bring us a significant step forward on our way to becoming a high-tech company,” said Olaf Berlien, CEO of OSRAM Licht AG.
 
These developments were supported by all businesses, in particular by the LED component business (Opto Semiconductors) and Specialty Lighting. Both reporting segments benefited from the overall healthy demand from the automotive industry, among other factors. The general lighting lamps business (Lamps) also recorded a pleasing revenue development. As announced, net income benefited from the book gain resulting from the sale of the shares in Foshan Electrical & Lighting Co., Ltd. (Felco) and reached €338 million in the first quarter. In the prior-year period, high transformation costs had led to a loss.
 
With the innovation and growth initiative, which was presented in November, Osram puts its focus on sustainable growth and wants to take even bigger advantage of the potential offered by semiconductor-based lighting technologies. Following the carve-out of the general lighting lamps business, the company will be based on three strategic pillars in the future: LED components (Opto Semiconductors, OS); Specialty Lighting (SP); luminaires, solutions and electronic components (Lighting Solutions & Systems, LSS).
 
Opto Semiconductors recorded a year-on-year revenue increase of 7% on a comparable basis in the first quarter, primarily driven by growth in the automotive and infrared businesses as well as high license income. At 22.3%, the EBITA margin was extraordinarily high, mainly because of the mentioned license income.
 
Specialty Lighting, with its Automotive Lighting and Professional Industrial Applications units, posted a revenue increase of 10% on a comparable basis in the first quarter, among other things due to resuming growth of the automotive business in China and continued LED growth. At 14.4%, the EBITA margin, excluding special items, reached a good level, despite an increasing revenue share of LED-based products and higher expenses for research and development.
 
The Lighting Solutions & Systems reporting segment comprises the business with luminaires and systems. The segment’s comparable revenue increased 1% in the first quarter as a result of rising luminaires and solutions revenues in Europe as well as continued growth in the components business. The adjusted EBITA margin improved to minus 1.3
 
The Lamps reporting segment comprises the general lighting lamps business. In view of the continuing decline in demand for traditional lamps, the segment recorded a comparable revenue decrease of 6% in the first quarter. The decline was smaller than the company had originally anticipated. The adjusted EBITA margin reached 9.8%.