Many businesses are updating their outlook of the year as the global business has been affected by the continuously spreading coronavirus across the world. Osram announced on March 18 the withdrawal of the guidance for its fiscal 2020 as the German photonics company thinks it is unlikely to achieve its corporate targets due to the coronavirus (COVID-19) pandemic.

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Osram noted that the unprecedented operational and financial challenges posed by the spread of COVID-19 and the uncertain developments in the coming weeks are leading to economic impact on the company. And Osram said at the moment it cannot adequately determined nor reliably quantified the impacts caused by the epidemic.

According to Osram, the coronavirus pandemic has led to increasing number of production shutdowns by its customer and disruption of global supply chains, resulting in a significant impact on the world economy and in particular on the global automotive industry. Osram’s Opto Semiconductors and Automotive units, whose activities in automotive business accounted for more than 50% of OSRAM group’s sales in the 2019 financial year, are thus highly affected.

The German company still addressed that ensuring the health and safety of employees is the highest priority and is preparing an additional comprehensive package of measures including short-time working at locations which are particularly affected, and the temporary closure of some of its own production facilities.