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OSRAM Adjusts FY18 Forecast On Market Slowdown, Project Postponements

OSRAM Licht AG (OSAGF.PK) announced its Managing Board now expects a comparable revenue increase of 1.0 - 3.0 percent (previously: 3.0-5.0 percent) and adjusted EBITDA of approximately 570 million-600 million euros (previously: approximately 640 million euros) for fiscal 2018. The new projection for earnings per share is 1.00-1.20 euros (previously: 1.90-2.10 euros). Negative free cash flow is now expected to be in the range of 150 million to 200 million euros (previously: negative free cash flow of 50 million to 150 million euros).

OSRAM said the restrictions on trade and sales as well as planning risks affecting automotive manufacturers have created noticeable uncertainty. Current business performance is also affected by the postponement of projects by the company's customers.

The Managing Board has also decided to accelerate the measures already in place that are aimed at a sustained improvement in profitability. These measures have a number of objectives, including a noticeable reduction in overhead costs and reorganization of the factory alliance.

The Managing Board will further develop OSRAM's medium-term strategy, and will also be considering an organizational realignment of the group and the updating of the medium-term financial targets.

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