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Osram to Sell Off Luminaires Business

Aug. 1, 2018
An earnings report said Osram “held its ground in a difficult market environment” in the third quarter.

The management board of Osram, Munich, Germany, said it has decided to divest its luminaires business, Osram Lighting Solutions, as part of a move to concentrate on business lines with higher potential for growth.

"Thanks to numerous measures, the earnings position of the Lighting Solutions business unit has stabilized significantly, therefore allowing us to initiate an organized sales process. This will result in a more strategic focus with regards to applications with high growth potential," said Olaf Berlien, CEO of Osram Licht AG, in a press release.

The release said talks will be held with interested parties for the luminaires business. The management board will provide an update on the progress of strategic plans for the company in November.

The financial figures of the Lighting Solutions (LS) business unit, combined with the contribution of the Digital Systems business unit, are captured within the Lighting Solutions & Systems (LSS) reporting segment. In a report on its third quarter financial performance released today, Osram reported total revenues for LSS of of €246 million (approximately $287 million) and an EBITDA loss of €11 million ($12.8 million).

The earnings report said Osram “held its ground in a difficult market environment” in the quarter. Management pointed to weak demand in the automotive market a general economic slowdown among the difficulties. “The trade tariffs in the USA, more stringent emission tests in Europe and lower production expectations from premium manufacturers have also caused uncertainty. In addition, there were project delays in business with mobile devices and horticulture applications and a continued slowdown of the general lighting market.”

Lighting Solutions joins Osram’s U.S. lighting services business on the selling block. The largest Lighting Solutions location is Traunreut, Germany, where luminaires for industrial and commercial sites and street and stadium lighting, for example, are produced.

Osram Lighting Solutions includes three brands besides Osram: Siteco indoor and outdoor lighting; Traxon Technologies creative and decorative lighting; and E:cue Lighting Control.