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 robust. We are steadily advancing on our path to becoming a system supplier. By acquiring part of LeddarTech, we have laid the foundation for a key future market—autonomous driving.”

OSRAM continued its growth in the third quarter of fiscal 2017. On a comparable basis, which accounts for portfolio and currency effects, revenue increased by more than 3%. Additionally, driven by strong demand in the previous year, sales from April to June 2017 rose by over 8% to 1.06 billion euros. This growth was fueled by sustained demand for optoelectronic semiconductors and the automotive industry. The adjusted EBITDA for the special project remained at a high level, reaching 174 million euros, with a margin of 16.4% (compared to 17% in the previous year). Net profit from continuing operations in the third quarter was 64 million euros, down slightly from 78 million euros in the same period last year.

The LED business (Optoelectronics Division, OS) benefited from strong demand in consumer products, such as components used in smartphone iris recognition, and solid growth in general lighting. The Special Lighting Division (SP) achieved good results in the automotive market, with both LED modules and stage entertainment lighting performing well. While the Lighting Solutions Division faced challenges in the U.S., OSRAM has taken several proactive steps to boost revenue in this area, showing gradual progress. Recently, a settlement was reached at the Traunreut factory, and a reduction in staff was implemented with minimal social impact.

OSRAM is actively expanding into the autonomous driving market.

Strategically, OSRAM acquired a 25.1% stake in Canadian laser radar company LeddarTech. Its patented lidar technology has been integrated into semiconductor and sensor modules for autonomous vehicles and driver assistance systems. LeddarTech specializes in developing solid-state laser radar systems that use infrared light to monitor the surrounding environment. Its advanced fiber optic sensing technology complements OSRAM’s semiconductor offerings. So far, the two companies have collaborated closely, with OSRAM investing tens of millions of euros in LeddarTech.

Stefan Kampmann, CTO of OSRAM Lighting Co., Ltd., said: “OSRAM is the world's leading supplier of sensor lights for self-driving vehicles, and demand in this sector is rising. We believe that investing in LeddarTech is essential to position OSRAM as a leading solution provider in this field.”

Through partnerships, equity investments, and acquisitions—from software and electronics to full system solutions—OSRAM has expanded its existing technology base across all areas of its original components and modules. These moves open up new applications and markets, including autonomous driving, intelligent lighting control, and even Industry 4.0 (Industrial Internet of Things). Recent acquisitions, such as LED Engin in Silicon Valley and a stake in the plant lighting startup Agrilution in Munich, highlight this strategic direction.

FY17 Financial Outlook

Considering the current business development and market trends, OSRAM confirmed its fiscal year 2017 financial forecast. The Board of Directors expects comparable revenue growth for the current fiscal year to be between 7% and 9%. The adjusted EBITDA margin for the special project is expected to range between 16.5% and 17.5%. Diluted earnings per share is projected to be between 2.7 and 2.9 euros. The company aims to achieve break-even free cash flow.