AMS Osram presents mid-term strategy, posts Q2 results at the upper end of guidance

Osram Licht AG

28/07/2023 06:52

July 28 (Reuters) - Austrian sensor maker AMS Osram
 AMS.S  on Thursday presented a strategic re-alignment of the
group while reporting second-quarter financial results in line
with the company's expectations.
    The Swiss-listed sensor maker plans to implement the
"Re-establish the Base" programme, focusing on its semiconductor
segment, that targets annual savings of 150 million euros
($164.52 million) by the end of 2025, half of which should be
realized by the end of 2024.
    "As we rebuild around our core business, we will benefit
from structural growth trends while making the company stronger
in target markets with more differentiated offerings," said
Chief Executive Aldo Kamper.
    AMS Osram reported third-quarter revenue between 840-940
million euros and an EBIT margin of 5-8%, as it sees improving
demand in the semiconductor sector, following the path of its
German peer Aixtron  AIXGn.DE , which on Thursday raised its
full-year outlook, driven by solid second-quarter results and
the highest quarterly order intake in over a decade.
     As a part of the re-establishing programme, the group also
expects to increase its revenues with a compound annual growth
rate (CAGR) of 6-10% from 2023 to 2026. This will help to
achieve an adjusted annual operating margin (adjusted EBIT) of
approximately 15% by 2026 onwards, the company added.
    The company, which designs optical solutions, posted group
revenues of 851 million euros for the quarter. This was in the
upper range of the pre-released 800-900 million euros but
slightly below analysts' forecast of 854.1 million euros in a
poll provided by Refinitiv. 


($1 = 0.9117 euros)

 (Reporting by Anastasiia Kozlova and Ozan Ergenay; Editing by
Kim Coghill)
 ((Anastasiia.Kozlova@thomsonreuters.com;
Ozan.Ergenay@thomsonreuters.com))