Osram prepares for economic measures against the erosion of the winners | message

Munich (Reuters) – The Osram lighting group is trying to reduce profit reduction through savings and sales of light fixture activity.

In the third quarter of fiscal 2017/18 (late September), adjusted operating income (EBITDA) declined 23% to 133 million euros, but slightly better than expected by analysts. The currency effects, increased development costs and the expansion of production alone cost more than 40 million euros, Osram said Wednesday in Munich. Sales fell 3.7% to 1.02 billion euros, mainly due to the weak dollar. Without currency effects, it would have stagnated due to the slowdown of customers due to global trade disputes.

The projected savings would rise to 130-140 million euros by 2020, said Ingo Bank 's chief financial officer. The reduction of some 600 jobs, now negotiated with staff representatives, is expected to bring in between 40 and 50 million euros a year. The matching of interests initially costs 50 to 60 million euros, but is included in the planning of the current fiscal year. In addition, there are efficiency programs in purchasing as well as in research and development.

By the end of June, Osram had reduced its sales and profit forecast for the second time this year. After nine months, a 1.4% drop in sales to 3.06 billion euros to the pound, net profit from continuing operations has plummeted 37% to 147 million. ; euro.

It was not until Tuesday that Osram pulled the reel and decided to sell the company by illuminating the streets, stadiums or tall buildings. The decision became apparent. In the field of business, it would have become difficult to achieve a leading position in the market, said the Bank. He assumes that there are prospects for division. "I do not want to speculate on the purchase price." Analysts worry that Osram should abandon the division. The business unit, which specializes in major projects such as the lighting of football stadiums and airports, as well as St. Peter's Basilica, employs just under 1,500 people, including around 820 in Traunreut, Upper Bavaria. . The division "Lighting Solutions and Systems", to which it belongs, was also in the red in the third quarter

Following the activity with LED bulbs and lamps, LS is the third division of which Osram separates. The Group wants to focus on high-growth and lucrative businesses such as the car or smartphone industry.