Suche
Mein Konto
ams revises microLED strategy: high depreciation leads to red numbers
ams OSRAM records red numbers in the first quarter - strategy adjustments planned. CEO Aldo Kamper speaks of positive growth prospects despite losses. Find out what this means for the future of the company.
ams revises microLED strategy: high depreciation leads to red numbers
AMS OSRAM was in the red in the first quarter due to a high write-off and is planning to revise its entire microLED strategy. CEO Aldo Kamper mentioned that the industry dynamics in the LED markets have changed due to the cancellation of a key project. The company is now increasingly focusing on LEDs for the automotive industry and is actively looking for a new tenant for the 8-inch factory in Malaysia.
The planned restructuring affects around 500 employees across all locations. If a new main customer decides to finance in a timely manner, microLED developments could continue without major impact on cash flow and EBIT. The adjusted strategy aims to improve free cash flow by more than 100 million euros and adjusted EBIT by up to 100 million euros in 2025. Nevertheless, transformation costs of up to 70 million euros are still expected for the current year.
Despite the impending restructuring, the end of the major project had no impact on sales, which were 9 percent below the previous year to 847 million euros due to seasonal factors. Adjusted EBITDA fell by 18 percent to 124 million euros, with the margin falling by 1.7 percentage points to 14.6 percent. Adjusted operating profit (EBIT) fell by 13 percent to 44 million euros, and the corresponding margin was 5.2 percent.
The prospects for AMS remain robust despite the current situation. The company expects robust demand from the automotive sector for the semiconductor segments. Demand from industry and medical technology is weak, while there is cautious optimism in the consumer goods market. For the second quarter, AMS is planning sales of 770 to 870 million euros with an adjusted EBITDA margin of between 14 and 17 percent. An improvement in business prospects is expected for the second half of the year. Cash flow from investing activities is expected to fall to 450 million euros, and free cash flow excluding net interest payments is expected to remain positive in 2024. On the stock exchange, ams OSRAM shares fell slightly by 0.14 percent to CHF 1.04.