AMS Osram rises after restructuring plans for microLED project unit

ams-OSRAM AG

26/04/2024 08:19

** Shares in AMS Osram  AMS.S  jump around 6% as the
Austrian sensor maker plans to restructure its microLED project
unit in Malaysia and Germany, after posting Q1 results 
    ** The exit from microLED technology will cost the company
700 million euros ($750.96 million), at the lower end of the
previously indicated range of 600 to 900 million euro
    ** "The impairment from the micro-LED cancellation is lower
and exit will improve adj. EBIT significantly due to lower
costs," Vontobel says
    ** AMS said as well that it is seeking transfer of the
eight-inch silicon wafers factory in Kulim, Malaysia, to a new
lessee with high priority, which it expects will cut its
long-term debt by around 400 million euros
    ** The moves are expected to positively impact cash flow and
adj. EBIT by around 100 million euros in 2025, compared to the
continuation of the project, Jefferies says
    ** Up to the previous session's close, shares were down 50%​
YTD

($1 = 0.9321 euros)

 (Reporting by Ozan Ergenay and Nathan Vifflin)
 ((Ozan.Ergenay@thomsonreuters.com;
nathan.vifflin@thomsonreuters.com))