FRANKFURT (Reuters) - German lighting group Osram on Wednesday said savings measures and improved conditions in some regions would help it achieve the profit forecast it set for the 2019/20 fiscal year despite an almost 30% drop in third-quarter sales.
“Our business performance shows that we were well prepared for the crisis,” said Chief Executive Olaf Berlien. “In particular, our development in North America and China makes us confident that we will achieve our current forecast for the year despite all adversities.”
The COVID-19 pandemic has hit demand from the automotive, semiconductor and digital lighting sectors, leading to a 29.4% fall in Osram’s revenue to 606 million euros ($710.54 million) in the three months that ended in June over the comparable 2019 period.
But the group’s adjusted EBITDA margin (earnings before interest, taxes, depreciation and amortisation) came in at minus 4.5%, well above an anticipated level of up to minus 10% seen in June.
Osram said then that sales in the 12 months to end-September could drop by up to 19% and the adjusted EBITDA margins would likely range between 3% and 6%.
Maintaining the forecast, Berlien said the current final quarter of the 2020 financial year will continue to be economically challenging.
In the third quarter, automotive revenues fell most sharply by 35.7% to 282 million euros, those in Opto Semiconductors by 19% to 297 million, and in the digital business 31% to 159 million.
Osram this month closed the takeover of Austrian sensor specialist AMS AG, which plans to make the combined entity, called ams+OSRAM, a European leader in sensors and light.
Osram also said that its supervisory board members Roland Busch, Frank H. Lakerveld and Arunjai Mittal resigned from their mandates on Tuesday.
They will be succeeded by management consultant Hans-Peter Metzler, ams board member Thomas Stockmeier and ams works council member Johann Christian Eitner.
($1 = 0.8529 euros)
Reporting by Vera Eckert; Editing by Michelle Martin