ams OSRAM delivers solid Q4

ams OSRAM delivers solid Q4 with revenues at EUR 908 million and adjusted EBIT of 6.9%, above the midpoint of the guided range, revenues of EUR 3.59 billion and 6.5% adj EBIT for Fiscal Year 2023. ams OSRAM continues executing its ‘Re-establish-the-Base’ efficiency and strategic realignment program to benefit from structural growth. The plan is underpinned by a strong design-win pipeline.

The company continues to win new business across the board underpinning its structural growth plans, especially in automotive. The company progresses with preparing the exit of the non-core semiconductor portfolio (with 2023 run-rate of around EUR 300 to 400 million) with focus on its passive optical components business.

The Semiconductor segment represented 69% of Q4 revenues, or correspondingly EUR 629 million. End-markets continued to show a diverse pattern.

Demand for products for automotive applications was particularly strong from China, whilst the other regions showed normal seasonal demand. Overall, the company recorded the highest ever revenue number from automotive semiconductor products, namely EUR 278 million, a 10% year-over-year increase. It underlines the strength of its underlying market position in its markets. Quarter-over-quarter, revenues increased by 7%.

Industrial and medical markets remained cyclically weak, with often significantly lower run-rates compared to a year before. Revenues declined both quarter-over-quarter and year-over-year. Demand from professional and industrial lighting applications was particularly soft. Project activity and thus demand for its Hyper Red LED products for horticulture continued to be below normal seasonality. Mass-market revenues – representing a very broad variety of applications - showed much lower traction than a year ago. Consequently, channel inventories remained at a high level.