The Austrian-German semiconductor manufacturer AMS Osram writes off over one billion euros and shrinks. The group wants to part with less profitable business areas with sales of around 300 to 400 million euros, as CEO Aldo Kamper explained on Friday. Instead, AMS Osram wants to concentrate on semiconductors for industrial needs, car manufacturers and medical technology in the future. The group also wants to keep the business with car and special lighting. On Thursday, the company informed about the forthcoming restructuring in a mandatory stock exchange notification.
The company did not give details. It is therefore not yet known which locations and how many employees the savings program will affect. However, only AMS product lines will be discontinued, as Kamper said. It is also clear that the board of directors will also shrink: instead of four board members, the group will in future only be managed by two managers at the top. The head office is in Premstätten in Styria.
Net loss of almost 1.5 billion euros
For the first half of the year, AMS Osram reported a net loss of almost 1.5 billion euros, largely due to write-downs of 1.3 billion. The restructuring of the Swiss-listed group should bring annual savings of 150 million euros by the end of 2025.
Sales in the remaining business areas are expected to increase by six to ten percent by 2026. “Our long-term growth opportunities are good and unchanged,” said Kamper in a conference call to journalists. The operating return should be 15 percent of sales by 2026.
CEO Everke had to go
The Austrian sensor manufacturer AMS took over the much larger traditional Munich company Osram in 2019 for more than four billion euros, largely financed by loans. Osram resisted the takeover for a long time. But since the majority of Osram shareholders finally accepted the takeover bid, AMS finally managed the coup. Net debt is currently a good two billion euros.
Aside from the major financial burden of the acquisition, the merged group was subsequently hit by the coronavirus pandemic and the subsequent economic slowdown. In the spring, CEO Alexander Everke – the architect of the takeover – finally gave up his chair early. When asked if the merger was a mistake, Kamper replied: “I think a lot can be made of it.” There are very good chances from the combination.
