EQS-Adhoc: ams-OSRAM AG: ams OSRAM delivers solid results in demanding supply chain and more volatile market environment with second quarter revenues and operating profitability (adj.) fully in line …
EQS-Adhoc: ams-OSRAM AG: ams OSRAM delivers solid results in demanding supply chain and more volatile market environment with second quarter revenues and operating profitability (adj.) fully in line …
EQS-Ad-hoc: ams-OSRAM AG / Key word(s): Quarterly / Interim Statement/Half
Year Results
ams-OSRAM AG: ams OSRAM delivers solid results in demanding supply chain
and more volatile market environment with second quarter revenues and
operating profitability (adj.) fully in line …
29-Jul-2022 / 07:00 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the
Regulation (EU) No 596/2014, transmitted by EQS – a service of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.
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Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss
Exchange
——————————
ams OSRAM delivers solid results in demanding supply chain and more
volatile market environment with second quarter revenues and operating
profitability (adj.) fully in line with expectations
• Second quarter revenues of EUR 1.18 billion and adjusted EBIT margin
of 8.8% fully match with expectation range
• Nearing completion of portfolio re-alignment with disposals of Digital
Systems Europe/Asia and architectural lighting business announced and
closing of disposal of automotive lighting systems business, on track
to complete remaining planned disposal
• Robust customer engagement for future capabilities from 8” advanced
LED and microLED manufacturing investment
• Planned retirement of approx. EUR 350 million of gross debt in the
third quarter
• Third quarter expected revenues of EUR 1,150-1,250 million
(EUR 1,190-1,290 million on a comparable portfolio basis) and expected
adjusted EBIT margin of 6-9% reflect an expected solid revenue
development in an increasingly unfavorable end market and
macro-economic environment impacting group production volumes and
industry inventory levels
Premstaetten, Austria and Munich, Germany (29 July 2022) — ams OSRAM
(SIX: AMS), a global leader in optical solutions, reports second quarter
and first half group financial results. “Our business showed a solid
performance in the second quarter where we delivered results fully in line
with our previous guidance. We see supply chain and end market imbalances
being enhanced by increasingly unfavorable macro-economic trends.
Nevertheless, our automotive and industrial & medical businesses offered
solid results in the quarter while our consumer business contributed
attractively to group results,” said Alexander Everke, CEO of ams OSRAM,
commenting on the second quarter.
“We see strong customer traction and support for innovation roadmaps we
are implementing as a leader in optical technologies. I am particularly
excited about our robust customer engagement around the cutting edge
capabilities created by our investment in industry-leading 8”
manufacturing capacity for applications in LED and microLED,” Everke
added.
“Our focus on the integration of ams OSRAM continues to be a priority with
our initiatives for integration and synergy creation progressing as
planned. In the quarter, we announced the disposals of the architectural
lighting business Traxon as well as the Digital Systems Europe/Asia
business for LED power supplies and related systems which is the last
major planned disposal. In addition, we closed the disposal of the
automotive lighting systems business AMLS at the beginning of July, which
had been established after the dissolution of the OSRAM Continental joint
venture. I am glad to confirm that we are nearing the completion of our
portfolio re-alignment with only one smaller-scale disposal outstanding,”
Everke added.
“Ongoing imbalances in semiconductor and other supply chains have
continued to impact volumes in several of our end markets, amplified by
lockdown-related effects in Asia. In light of this situation we realized a
solid operational performance in the quarter. These imbalances continue
and we have started to see a softening of forward demand trends in the
automotive sector leading to order push-outs for the second half. We
believe these reflect increasingly unfavorable global macro-economic
developments and related challenges including expected inventory
adjustments in the global automotive value chain.
Our portfolio of optical technologies offers exciting opportunities for
mid- and long-term profitable growth across our end markets. We are
strongly engaged in comprehensively focusing and streamlining our
portfolio in line with these goals. We will continue highly dedicated R&D
investments into our portfolio and defined growth drivers to create
long-term value in optical solutions,” Everke concluded.
Quarterly financial summary
EUR millions Q2 2022 Q1 2022 QoQ Q2 2021* YoY
(except per share data)
Revenues 1,183 1,246 -5% 1,239 -5%
Gross margin adj.^1) 31.6% 33.1% -150 bps 33.5% -190 bps
Operating income adj.^1) 104 126 -18% 109 -5%
Operating margin adj.^1) 8.8% 10.1% -130 bps 8.8% +0 bps
Net result adj.^1) -54 102 -153% 70 -178%
Diluted EPS adj.^1) -0.21 0.39 0.26
Diluted EPS adj. (in CHF)^1)2) -0.21 0.40 0.29
Operating Cash Flow 100 147 -32% 190 -48%
Net debt 1,727 1,853 -7% 1,908 -9%
^1)^ Excluding M&A-related, transformation and share-based compensation
costs as well as results from investments in associates and sale of a
business
^2)^ Earnings per share in CHF were converted using the average currency
exchange rate for the respective periods
* 2021 financials reflect reclassification within functional cost
categories
Note: EPS denotes earnings per share
Second quarter group revenues were EUR 1,183 million, down 5% sequentially
compared to the first quarter 2022 and down 5% compared to same quarter
2021, influenced by deconsolidation effects. Adjusted[1]^[1]^group gross
margin for the second quarter 2022 was 32%, down from 33% for the first
quarter as well as for the same quarter 2021. First half group revenues
were EUR 2,429 million, compared to EUR 2,521 for the same period 2021.
Adjusted^1 group gross margin for the first half 2022 was 32% compared to
34% for the same period 2021.
The second quarter adjusted^1 group result from operations (EBIT) was EUR
104 million or 9% of revenues compared to EUR 126 million or 10% for the
first quarter and EUR 109 million or 9% of revenues for the same period
2021 (unadjusted: EUR 216 million or 18% of revenues for the second
quarter reflecting a substantial one-time effect from a disposal). The
adjusted^1 group result from operations (EBIT) for the first half was EUR
230 million or 9% of revenues compared to EUR 251 million or 10% for the
same period 2021.
Second quarter adjusted^1 group net result was EUR -54 million due to
one-time effects compared to EUR 102 million for the first quarter and
compared to EUR 70 million for the same quarter 2021 (unadjusted: EUR 58
million for the second quarter). Second quarter adjusted^1 diluted
earnings per share[2][2] were EUR -0.21 or CHF -0.21 (EUR 0.22 or CHF 0.22
unadjusted). First half adjusted^1 group net result was EUR 48 million
compared to EUR 144 million for the same period 2021. First half
adjusted^1 diluted earnings per share[3][3]^were EUR 0.18 or CHF 0.18 (EUR
0.28 or CHF 0.29 unadjusted).
Second quarter group operating cash flow was EUR 100 million while group
free cash flow was positive with EUR 3 million. First half group operating
cash flow was EUR 247 million with a free cash flow of EUR 37 million.
Group net debt was EUR 1,727 million on 30 June 2022, translating into a
group leverage of 1.9x net debt/adjusted^1 EBITDA. Through the scheduled
repayment of the September 2022 USD convertible bond and a promissory note
(Schuldscheindarlehen) in the third quarter ams OSRAM expects its gross
debt position to be approx. EUR 350 million lower by the end of the third
quarter. Cash and cash equivalents stood at EUR 1,413 million on
30 June 2022.
The group’s Semiconductors segment again offered the largest contribution
to group results providing 68% of revenues in the second quarter. The
segment’s automotive business delivered good results in a demanding market
environment where end-to-end supply imbalances continued to result in
reduced production volumes. This constrained industry situation was
additionally impacted by lockdown-related repercussions in Asia during the
second quarter. The consumer market area performed solidly and in line
with expectations in the second quarter. Lockdown-related impacts in Asia
added to seasonal effects and created a less favorable demand situation
with lower global smartphone shipments. Against this backdrop ams OSRAM
benefitted from the broad presence of its optical sensing solutions across
consumer market segments and device classes. The industrial and medical
market area continued its attractive contribution to group results in the
second quarter. Demand for advanced LED solutions in established and
emerging applications as well as for imaging solutions remained robust in
important markets. Optical innovation is a cornerstone of ams OSRAM’s
strategy for profitable growth. The group’s R&D investments and product
roadmaps remain clearly focused on growth opportunities that will drive
innovative optical applications for automotive, consumer, industrial and
medical markets.
The Lamps & Systems (L&S) segment delivered an in-line performance in the
second quarter contributing 32% of revenues. The L&S automotive business
including legacy traditional lighting tracked expectations in the second
quarter taking into account automotive supply chain volatility and
imbalances next to stronger seasonal slowdowns in the aftermarket. The
other L&S businesses offered solid contributions from their range of
industrial, building-related and medical applications in line with
respective end demand trends.
For the third quarter 2022, ams OSRAM expects group revenues of EUR
1,150-1,250 million (EUR 1,190-1,290 million on a comparable portfolio
basis) and an expected adjusted operating (EBIT) margin of 6-9%, based on
currently available information and exchange rates. These expectations
include a revenue deconsolidation effect for the third quarter from the
closing of the disposal of the AMLS automotive lighting systems business
which reduces expected third quarter revenues by around EUR 40 million on
a comparable portfolio basis.
Expectations for the third quarter reflect a more demanding situation in
key end markets and a more unfavorable macro-economic environment
including expected inventory adjustments in the industry, amongst others
driving overall reduced automotive production volumes and lower total
smartphone volumes year-on-year. While expected revenues show a solid
development, these end market trends cause decreased production volumes in
ams OSRAM’s manufacturing operations in the third quarter, negatively
impacting group margins. In light of these macro-economic trends, ams
OSRAM is proactively implementing a range of cost mitigation measures
while the group manages through the evolving market environment.The
expectations for the third quarter also incorporate disposal-related
deconsolidation effects compared to the previous year.
The Half Year Report 2022 and additional selected financial information
for the second quarter and first half 2022 is available on the company
[4]website. The second quarter 2022 investor presentation is also
available on the company [5]website. ams OSRAM will hold a conference call
on the second quarter and first half results on Friday, 29 July 2022 at
10.30am CEST. The conference call will be available via webcast at:
[6] https://bit.ly/3nQHLyf.
###
About ams OSRAM
The ams OSRAM Group (SIX: AMS) is a global leader in optical solutions. By
adding intelligence to light and passion to innovation, we enrich people’s
lives. This is what we mean by Sensing is Life.
With over 110 years of combined history, our core is defined by
imagination, deep engineering expertise and the ability to provide global
industrial capacity in sensor and light technologies. We create exciting
innovations that enable our customers in the consumer, automotive,
healthcare and industrial sectors maintain their competitive edge and
drive innovation that meaningfully improves the quality of life in terms
of health, safety and convenience, while reducing impact on the
environment.
Our around 24,000 employees worldwide focus on innovation across sensing,
illumination and visualization to make journeys safer, medical diagnosis
more accurate and daily moments in communication a richer experience. Our
work creates technology for breakthrough applications, which is reflected
in over 15,000 patents granted and applied. Headquartered in
Premstaetten/Graz (Austria) with a co-headquarters in Munich (Germany),
the group achieved over EUR 5 billion revenues in 2021 and is listed as
ams-OSRAM AG on the SIX Swiss Exchange (ISIN: AT0000A18XM4).
Find out more about us on [7] https://ams-osram.com
ams is a registered trademark of ams-OSRAM AG. In addition many of our
products and services are registered or filed trademarks of ams OSRAM
Group. All other company or product names mentioned herein may be
trademarks or registered trademarks of their respective owners.
Join ams OSRAM social media channels: [8]>Twitter [9]>LinkedIn
[10]>Facebook [11]>YouTube
[12]^[1] Excluding M&A-related, transformation and share-based
compensation costs as well as results from investments in associates and
sale of a business
[13]^[2] Based on 261,253,566 basic / 262,689,017 diluted shares
[14]^[3] Based on 261,250,065 basic / 262,076,070 diluted shares
══════════════════════════════════════════════════════════════════════════
29-Jul-2022 CET/CEST News transmitted by EQS Group AG. www.eqs.com
══════════════════════════════════════════════════════════════════════════
Language: English
Company: ams-OSRAM AG
Tobelbader Straße 30
8141 Premstaetten
Austria
Phone: +43 3136 500-0
E-mail: investor@ams-osram.com
Internet: https://ams-osram.com/
ISIN: AT0000A18XM4
WKN: A118Z8
Listed: Regulated Unofficial Market in Dusseldorf, Frankfurt, Munich,
Stuttgart, Tradegate Exchange; BX, SIX, Vienna Stock Exchange
(Vienna MTF)
EQS News ID: 1408649
End of Announcement EQS News Service
1408649 29-Jul-2022 CET/CEST
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