ams OSRAM Delivers Solid Results in Q2 2022

ams OSRAM reports second quarter and first half group financial results.

Second quarter group revenues were €1,183 million, down 5% sequentially compared to the first quarter 2022 and down 5% compared to same quarter 2021, influenced by deconsolidation effects. Adjusted group gross margin for the second quarter 2022 was 32%, down from 33% for the first quarter as well as for the same quarter 2021.

First half group revenues were €2,429 million, compared to €2,521 for the same period 2021. Adjusted group gross margin for the first half 2022 was 32% compared to 34% for the same period 2021.

“Our business showed a solid performance in the second quarter where we delivered results fully in line with our previous guidance. We see supply chain and end market imbalances being enhanced by increasingly unfavorable macro-economic trends. Nevertheless, our automotive and industrial & medical businesses offered solid results in the quarter while our consumer business contributed attractively to group results,” said Alexander Everke, CEO of ams OSRAM.

“We see strong customer traction and support for innovation roadmaps we are implementing as a leader in optical technologies. I am particularly excited about our robust customer engagement around the cutting-edge capabilities created by our investment in industry-leading 8” manufacturing capacity for applications in LED and microLED,” Everke added.

“Ongoing imbalances in semiconductor and other supply chains have continued to impact volumes in several of our end markets, amplified by lockdown-related effects in Asia,” Everke noted. “In light of this situation ,we realized a solid operational performance in the quarter. These imbalances continue and we have started to see a softening of forward demand trends in the automotive sector leading to order push-outs for the second half. We believe these reflect increasingly unfavorable global macro-economic developments and related challenges including expected inventory adjustments in the global automotive value chain.”

Second quarter group operating cash flow was €100 million while group free cash flow was positive with €3 million. First half group operating cash flow was €247 million with a free cash flow of €37 million.

The group’s Semiconductors segment again offered the largest contribution to group results, providing 68% of revenues in the second quarter. The segment’s automotive business delivered good results in a demanding market environment where end-to-end supply imbalances continued to result in reduced production volumes. This constrained industry situation was additionally impacted by lockdown-related repercussions in Asia during the second quarter.