Due to the fall in demand in the automotive industry, the quarterly results of the German Osram lighting company deteriorated according to the quarterly balance sheet published on Wednesday.
In the second quarter of the financial year, sales revenue of EUR 862 million, and sales of EUR 8.28 million in the second quarter of 2018, down by 8.2 percent, fell by 92.4 percent to EUR 11 million from EUR 146 million in Osram Licht AG, Germany. The operating result of the lighting company was completed at the end of March in three months.
Operating profit adjusted for one-off items was EUR 70 million, 55.9 percent lower than a year earlier at EUR 159 million. The company’s earnings-related profitability dropped to 8.1 percent from 16.9 percent.
Osram’s fiscal year ended with a loss of EUR 91 million in the second quarter against a net profit of EUR 56 million a year earlier.
Osram’s decline in earnings is attributable to a decline in demand in its largest business, automotive lighting, although it has suffered significant traffic losses in its other two businesses. The automotive industry’s turnover decreased by 7.4 percent, the optical semiconductor business by 15.3 percent, and digital applications by 3.0 percent.
The company’s result was also burdened by restructuring costs.
In the future, Osram will focus its growth strategy on the development of LED lighting applications, optical semiconductor technology and digital lighting applications in addition to automotive lighting technology, said CEO Olaf Berlien on the presentation of the quarterly balance sheet.
Osram is engaged in advanced negotiations with Bain Capital and Carlyle for investment companies. Investment funds are currently reviewing the company’s books, the CEO said.
Osram Licht AG. The lighting company employs around 26,000 people worldwide. In 2018, the company generated sales of EUR 3.8 billion. Its share price rose by one and a half percent on Wednesday at the Frankfurt Stock Exchange as the second quarter earnings report turned out to be better than analyst expectations. Since the beginning of the year, the price of paper has fallen by 22 percent.