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Osram Licht Slips To Q1 Loss; Says FY Targets Achievement Subject To Revival

Osram Licht AG (OSAGF.PK), a German manufacturer of lamps, lighting systems, and electronic control gears, reported Thursday a loss after tax of 5 million euros in its first quarter, compared to profit of 77 million euros.

EBITDA, before special items, was down 46.4 percent to 93 million euros from 174 million euros last year. The adjusted EBITDA margin reached 11.3 percent, down 720 basis points from 18.5 percent last year.

Revenue decreased around 11.9 percent to 828 million euros from 939 million euros a year ago. On a comparable basis, quarterly revenue decreased around 15 percent.

The market weakness is reflected in all three of Osram's business segments, the company said.

Olaf Berlien, CEO of OSRAM Licht, said, "There was an increased headwind from our markets in the past quarter. In particular, the automotive cycle has deteriorated significantly. But demand has also declined in the mobile devices and general lighting sectors. We have taken a number of measures to improve revenue and returns."

The company noted that because of the numerous uncertainties, the perspective for the upcoming quarters remains significantly restricted. The Management Board has initiated a number of countermeasures, also aiming for an increase in revenue. Significant structural measures were initiated in the Opto Semiconductors division, in particular. This is intended to secure the forecast for the year. However, the achievement of the annual targets is subject to a revival due to incoming orders in the upcoming months.

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