With the impacts of COVID-19 outbreak, several companies across the world including Osram had withdrawn their business outlook or guidance earlier this year. As for new, following reopens in many countries, Osram provided an updated business guidance for its fiscal year 2020, starting October 2019 and ending September 2020.

Osram reported on June 17, 2020, that it is expecting an on-year revenue decline of -15 to -19%, comparing to its previous guidance of comparable revenue growth between -3% and +3%. The projected adjusted EBITDA margin went down from 9% to 11% to 3% to 6% with a negative free cash flow in the mid double digit to lower triple digit million range (previously: positive free cash flow in the mid double digit million range). For the ongoing third quarter of the fiscal year (April 1 to June 30 2020) the current forecast provides for a comparable revenue decline of up to -35 %, a negative adjusted EBITDA margin of up to -10% and a negative free cash flow in the mid double digit million range.

Osram withdrew the guidance for fiscal year 2020 in March 2020 due to the unpredictable impacts of the COVID-19 pandemic. After an expected decline of business development in the third quarter, the Managing Board now expects a slight demand recovery in the upcoming months. The profound weakness of the global automotive business as well as a demand weakness in Osram’s core markets in Europe and the U.S. will burden the development also in the fourth quarter. This is countered by currently increasing revenues in China and the early measures taken by the company which helped to moderate the impact of the COVID-19 pandemic on liquidity and financial results. These measures will continue to be consistently implemented. The same applies to the started structural initiatives for the sustainable improvement of profitability by which gross savings of at least EUR 300 million (US$ 337.72 million) will be realized until the end of fiscal year 2022.