Osram raised its business guidance for fiscal year 2020 since the company said it has seen strong recovery in summer, particularly in August. In the past few seasons, the German company has revised its business guidance several times, mostly revised the numbers down. However, this time the company is raising up its expectation.

The Managing Board of Osram now expects a comparable revenue decline of approximately -14%, comparing to previous number of -15% to -19%. The adjusted EBITDA margin is now approximately 8%, which the company set at 3% to 6% previously. Osram also said that it will reach a balanced free cash flow, while it had expected a negative Free Cash Flow in the middle double digit to lower triple digit million range.

Osram noted that business performance of its Opto Semiconductors and Automotive units were supported by improved conditions in its core markets in China and the U.S. Furthermore, the consistent implementation of measures taken to moderate the impact of the COVID-19 pandemic contributes significantly to stabilize profit and Free Cash Flow.

Osram had withdrawn its guidance for fiscal 2020 in March due to the uncertain global condition with the impacts of COVID-19. Later in June, Osram provided an updated business outlook for FY2020 and addressed its expectation for the third quarter of its FY3Q20 (April 1 to June 30, 2020). Now, right before its Osram’s fiscal 2020 ends, the company updated its guidance again and takes an optimistic view of the market.