AMS Osram drops 23% after customer cancels microLED project

ams-OSRAM AG

29/02/2024 07:52

** Shares in AMS Osram  AMS.S  plunge around 23% in
pre-market indications after the Swiss sensor maker said a
customer had unexpectedly cancelled a "cornerstone" microLED
project
    ** AMS said it expects impairment charges of 600-900 million
euros and around 30-50 million euros lower adjusted EBIT for
2024
    ** It added it would revisit the future use of its assets
related to its microLED strategy, particularly the new 8-inch
LED facility in Kulim, Malaysia
    ** It now sees its mid-term revenue CAGR growth to 6-8% on
like-for-like basis vs an earlier projection of 6-10% 
    ** Vontobel downgrades the stock to "hold" from "buy",
adding the project was a key element of its investment case,
which is now nullified
    

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))