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Osram Licht Posts Q4 Loss; Backs Ams Takeover

Osram Licht AG (OSAGF.PK) reported that its fourth-quarter loss after taxes was 213 million euros, compared to profit of 13 million euros in the prior year. The net result was negatively impacted primarily by non-cash goodwill amortization, mainly in the business segment Digital Systems and in the joint venture Osram Continental.

Meanwhile, Osram Licht has recommended its shareholders to accept a 41 euros per share takeover offer from ams after reaching a business combination agreement with the Austrian sensor manufacturer that will protect employees from merger-related layoffs until the end of 2022. The shareholders have time until December 5, 2019, to accept the offer.

Osram Licht's fourth-quarter revenue decreased 5.3 percent to 924 million euros from 975 million euros in the prior year. Revenues declined by 9 percent on a comparable basis.

Osram said it does not expect global automobile production to recover in the short term. Due to the moderate market development and the accounting standards to be applied, Osram has made an impairment on the goodwill of Osram Continental of 171 million euros.

The company said it is sticking to its mid-term targets, but expects its achievement to be postponed by two years.

Osram expects a stabilization in fiscal year 2020. It expects a moderate change in revenue in the current financial year on a comparable basis (minus 3 to plus 3 percent). The Executive Board and the Supervisory Board propose not to pay a dividend for the past fiscal year.

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