Osram Seeks to Complete Ledvance Sale in 2017 as Earnings BeatBy
Strong demand at automotive unit boosted revenue and profit
Ledvance sale recently received approval from German ministry
Osram Licht AG said it hopes to complete the sale of its Ledvance general lamps business in the 2017 fiscal year after the former unit of Siemens AG reported first-quarter earnings that beat analyst expectations.
Earnings before interest, taxes and amortization were 141 million euros ($151 million) in the three months through December, the Munich-based company said in a statement on Wednesday. That beat an average estimate of 102.8 million euros from analysts surveyed by Bloomberg.
“Demand for our products remains strong, which shows that our strategy is working,” Chief Executive Officer Olaf Berlien Berlien said. “We are on the right track.”
Sales for the quarter were 991 million euros, beating analysts’ estimate of 987.5 million euros. Strong demand in the automotive industry buoyed revenue, the company said.
Osram is focusing the business on semiconductors after the German Economy Ministry signed off on the sale of Ledvance to a Chinese consortium. After the disposal, the company’s portfolio will center on automotive lighting as well as sensors and specialty LEDs.
Former parent Siemens AG has a 17 percent stake in Osram.