Osram Licht AG (OSR), the world’s second-biggest lighting company, boosted its savings target by 200 million euros ($267 million) after reporting fourth quarter net income that missed analyst estimates.
Net loss attributable to shareholders narrowed to 29.8 million euros from 119.5 million euros a year earlier, the Munich-based former subsidiary of Siemens AG (SIE) said in a statement. The average estimate of six analysts surveyed by Bloomberg was a net loss of 14.5 million euros. Revenue declined 2.8 percent to 1.3 billion euros.
“We have made significant progress in our company reorganization and execution continues to be ahead of schedule,” Osram Chief Executive Officer Wolfgang Dehen said in the statement. “We also assume that Osram will surpass its earlier announced 2013 to 2015 cumulative savings target.”
Osram was spun off by Siemens July 8 as Europe’s largest engineering divests units whose profitability or growth potential it deems inadequate. Osram is shutting or selling 11 of its plants as it targets improved profitability. The lighting maker is seeking an adjusted earnings before interest, taxes and amortization margin of more than 8 percent next year.
Annual djusted Ebita climbed to 410 million euros from 314 million euros a year earlier, representing 7.7 percent of the 5.3 billion euros in sales.
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