OSRAM's third-quarter operating results remain strong and momentum is self-driving

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Olaf Berlien, CEO of OSRAM Lighting Group, stated: “OSRAM’s financial performance remains strong. We are steadily advancing on our path to becoming a system supplier. By acquiring part of LeddarTech, we have laid the foundation for key future markets, such as autonomous driving.”

In the third quarter of fiscal 2017, OSRAM continued to grow. Excluding the impact of portfolio changes and currency fluctuations, revenue increased by over 3%. Additionally, with a peak revenue of 47 million euros in the previous year, sales from April to June 2017 rose by more than 8% to 1.06 billion euros. This growth was driven by sustained demand for optoelectronic semiconductors and strong demand in the automotive sector. The adjusted EBITDA for the special project reached 174 million euros, maintaining a high level similar to the previous year, with a margin of 16.4% (previous year: 17%). Net profit from continuing operations in the third quarter was 64 million euros (previous year: 78 million euros).

The LED business (Optoelectronics Division, OS) benefited from strong demand for consumer products, such as components used in smartphone iris recognition features, as well as growth in general lighting. The Special Lighting Division (SP) performed well in the automotive market, with both LED module and stage entertainment lighting showing good results. While the Lighting Solutions Division in the US still faces challenges, OSRAM has implemented several initiatives to boost revenue and is gradually making progress. Recently, a settlement was reached at the Traunreut factory, and steps were taken to reduce staff while minimizing social impact.

OSRAM is actively expanding into the autonomous driving market.

Strategically, OSRAM acquired a 25.1% stake in Canadian lidar company LeddarTech. Its patented lidar technology is now integrated into semiconductor and sensor modules for autonomous vehicles and driver assistance systems.

LeddarTech specializes in solid-state laser radar (LIDAR) systems that use infrared light to monitor the surroundings. Its advanced fiber optic sensing technology complements OSRAM’s semiconductor products. Currently, the two companies are collaborating, with OSRAM investing tens of millions of euros in LeddarTech. Stefan Kampmann, Chief Technology Officer of OSRAM, said: “As the world’s leading supplier of sensor lights for self-driving vehicles, we see rising demand in this area. We believe investing in LeddarTech is a necessary step to position OSRAM as a leading solution provider in this field.”

Through partnerships, equity investments, and acquisitions, OSRAM has expanded its technology base across software, electronics, and system solutions. This move opens up new applications and markets, including autonomous driving, smart lighting control, and even Industry 4.0. Recent acquisitions, such as LED Engin in Silicon Valley and a stake in Agrilution, a Munich-based plant lighting startup, reflect this strategy.

FY17 Financial Outlook

Considering current business developments and market trends, OSRAM confirmed its FY17 financial forecast. The board expects comparable revenue growth for the current fiscal year to be between 7-9%, with an adjusted EBITDA margin for the special project between 16.5-17.5%. Diluted earnings per share is expected to range from 2.7 to 2.9 euros. The company aims to achieve a break-even free cash flow position.