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Osram raises profit outlook after strong quarter

Published 16/04/2015, 19:56
© Reuters. The new headquarters of lamp manufacturer Osram is pictured in Munich
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BERLIN (Reuters) - German lighting maker Osram (DE:OSRn) raised its forecast for 2015 profitability on Thursday after its second-quarter results were boosted by favourable currency effects.

The world's second-biggest lighting maker after Dutch Philips (AS:PHG) said it now expected an adjusted profit margin before interest, tax and amortisation (EBITA) of above 9 percent for the fiscal year to end-September.

Osram had previously forecast an adjusted EBITA margin similar to last year's 8.7 percent.

The company reported adjusted EBITA of 151 million euros (109 million pounds) for the quarter to end-March, giving an adjusted EBITA margin of 10.8 percent. On a reported basis, EBITA was 125 million euros.

Revenue at the company, which is racing to keep up with a rapid rise in pure-play LED (light-emitting diode) digital light makers from Asia, fell 1.5 percent on a comparable basis to 1.4 billion euros.

Osram is conducting a strategic review under new chief executive Olaf Berlien that could result in splitting off some parts of its business. Its finance chief told Reuters last month there were "no forbidden thoughts" in the review process.

The company is due to publish full quarterly results on April 29.

© Reuters. The new headquarters of lamp manufacturer Osram is pictured in Munich

($1 = 0.9296 euros)

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