BERLIN (Reuters) - Osram (OSRn.DE) on Thursday reported a profit after tax of 1 million euros ($1.1 million) in its first quarter and confirmed its guidance while the German lighting group is being acquired by Austrian sensor maker AMS (AMS.VI).
The Munich-based company had posted a loss after tax of 5 million euros a year ago but said its performance programmes - which have included job cuts and boosting production - were now having an impact.
“Our businesses have adapted to a more challenging market environment. Next to favorable one-time effects, the significant year-on-year profitability and cash flow improvements are a direct result of the performance programs we set in motion at the earliest signs of economic slowdown,” CEO Olaf Berlien said.
Osram posted a nominal 5.5% increase in revenue to 873 million euros for the quarter that ended in December. Adjusted for currency and portfolio effects, the top line grew by 0.5%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 22.2% to 114 million euros.
Osram pointed to economic uncertainty but confirmed its guidance for the fiscal year, saying it still expected revenues to come in at between minus and plus 3% and it continues to forecast an adjusted EBITDA margin of 9%-11%.
AMS, a supplier to Apple (AAPL.O), has secured nearly 60% of Osram’s shares and is preparing for a capital increase to fund the takeover. It expects the transaction - waiting to be approved by cartel authorities - to be completed in the first half of the year.
Berlien, who took over as Osram’s CEO in 2015, has sought to transform Osram from a light bulb maker into a high-tech group that builds chips, provides digital lighting systems and supplies sensors and other components.
Reporting by Michelle Martin; Editing by Douglas Busvine