Osram announced its FY2Q20 financial results and said that it has achieved a good second quarter given the global challenges. The company registered a revenue of EUR 821 million (US$ 890.25 million), which dropped by 7.9% YoY. Despite that, the adjusted EBITDA increased by 36.8% YoY and adjusted EBITDA margin also improved by 3.6 p.p to 11.7%. Due to restructuring costs for the change in structural and personnel adjustments, Osram reported a loss of EUR 39.3 million (US$ 42.61 million).

Osram CEO, Olaf Berlien, said that the company had reacted very fast to counter the consequences of the COVID-19 crisis and the measures taken have affected throughout the company covering production and operation. However, as part of company-wide crisis management, additional liquidity volume of around EUR 200 million (US$ 216.86 million) was identified until the end of the fiscal year. Osram is also sticking to its existing performance programs, which will bring savings of EUR 300 million (US$ 325.28 million) from 2018 until the end of fiscal year 2022. In this way, the company is well prepared for economic challenges.

The Opto Semiconductors division reported a strong adjusted EBITDA margin of 21 percent in the past quarter with an on-year sales decline at 0.3%. Osram’ Automotive division continues to suffer from the weak automotive industry and the market is not like to revive soon with the COVID-19 crisis. Revenues in the business unit Digital also fell significantly by about 12% YoY. Here, the pandemic-related decline in the entertainment and cinema lighting business and in building illumination projects in China became noticeable. The Digital division was nevertheless able to maintain its operating profitability, with adjusted EBITDA positive at EUR 2 million (US$ 2.17 million).

The German high-tech photonic company believes that the effects of COVID-19 on the global economy cannot yet be predicted in the medium and long term. The situation is accompanied by operational and financial challenges for the entire economy. In particular, production shutdowns on the part of customers and disruptions in global supply chains are very likely to affect Osram's business development. Therefore, Osram does not expect to achieve its original corporate targets for the 2020 financial year. Osram will only be able to update its forecast when the general market situation allows more clarity.

Other measures taken by Osram also include cutting the salary of the Managing Board by 10% in May as a larger number of its employees will be affected by short-time working. Further measures will be decided according to the current situation.