Osram increases returns and cash flow

Medium term effects of COVID-19 pandemic not yet predictable, reports firm

Osram increases returns and cash flow

Osram has reported a “good” second quarter given the global challenges and thus met the market expectations.

Although revenue fell by almost eight per cent on a comparable basis to 821 million euros, a positive free cash flow of 64 million euros was achieved particularly through targeted cash management.

The adjusted EBITDA margin improved by almost four percentage points year-on-year to 11.7 per cent.

Thanks to the structural measures and the conversion to IFRS 16, adjusted EBITDA was about a third higher than in the previous year at 96 million euros.

Restructuring

Due to restructuring costs of 45 million euros, mainly for charges for the structural and personnel adjustments, the net result was negative at 39.3 million euros.

Olaf Berlien, CEO of OSRAM Licht AG said: “The measures we took very early on to counter the consequences of the COVID-19 crisis are having an effect throughout the company.

“It has been a challenge to maintain production largely on a regular basis in recent weeks, as our top priority is and remains the health and protection of our employees.

“Osram is also using the time to be well positioned after the Corona crisis.

“Our high equity ratio is of great benefit to us.”

Crisis management

As part of company-wide crisis management, additional liquidity volume of around 200 million euros was identified until the end of the fiscal year through working time measures, the review of investments and consistent financing management, among other things.

Regardless of the acute measures, Osram is sticking to its existing performance programs, which will bring savings of 300 million euros from 2018 until the end of fiscal year 2022.

Starting in May, a larger number of Osram employees will be affected by short-time working.

The Osram managing board has waived ten per cent of its May salary.

It will decide on further measures according to the current situation.

Managers also will make a corresponding solidarity contribution through their variable income components.

For further information about Osram, select ‘more details’ below.

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