Press information
Annual press conference:
Osram in fiscal year 2001 (10.1.2000 - 9.30.2001)
- The EBITA rose by 19% to € 462 million (previous year: 388).
- The EBITA margin climbed to 10.2%. Excluding extraordinary effects totaling € 54 million, it matches the previous year’s figure of 9.0%.
- Excluding currency and structural effects, the Group sales of € 4.5 billion (previous year: 4.3) are at the level of the previous year.
The world’s second largest lamp manufacturer has successfully held its ground in a difficult environment.
High earnings level maintained
Osram managed to achieve an EBITA of € 462 million, despite unfavorable economic conditions, particularly in the USA. In this context, the company benefited from € 54 million in non-recurrent earnings resulting from a joint venture holding and the liquidation of provisions after the successful conclusion of a patent dispute in the USA. Excluding these effects, Osram maintained the EBITA margin of the previous year.
Stable sales
Group sales rose by 5% to € 4.5 billion. Calculated on a comparable basis, they match the previous year’s level. Three percentage points of the growth rate are the result of currency effects primarily attributable to the US dollar, and another two percentage points reflect structural effects, particularly changes in the scope of consolidation. We achieved a double-digit growth rate in the sale of innovative products, which had a positive effect on the result. Osram’s long-term innovation strategy is paying off in this respect.
Investments in innovation
Expenditures on research and development totaled roughly 5% of sales and were thus above the industry average once again. Capital expenditures on plant and equipment were boosted by 17% compared to the previous year, reaching € 386 million. Expenditures focused on facilities for manufacturing innovative products, where Osram Opto Semiconductors took up a leading position with € 103 million. € 136 million were invested in Germany.
Workforce expanded
As at September 30, 2001, Osram employed a worldwide staff of 34,878, including 9,636 in Germany. The increase of 2,630 over the previous year primarily resulted from first-time consolidations and the growth of Osram Opto Semiconductors.
Outlook
"None of us can reliably predict when the US economy will revive and how strongly the individual countries in the world and the various industries will be affected by the consequences of the terrorist attacks of September 11, 2001," said Dr. Wolf-Dieter Bopst, President of Osram. In the past, however, the lighting market has often acted as a kind of economic weather balloon. For example, Osram felt the first effects of the slowdown in the USA much earlier than other industries. Consequently, we hope that Osram will also be among the first to benefit from economic recovery. Despite the difficult environment prevailing at present, Dr. Bopst is adhering to his medium-term goal of reaching an EBITA margin of 10 to 11% in 2003: "In addition to short-term measures to reduce costs, we will continue to rely on our long-term strategy of expanding business in the Asian/Pacific region and Eastern Europe, rigorously promoting innovative products, entering new growth markets and continuously striving for cost leadership - by means of benchmarking in all product segments."
The major economic slowdown in the NAFTA countries led to a staff cut of 14% to 12,669 employees (including contractors). As a result of the good growth rates achieved with innovative products, roughly 400 new employees were hired in Germany, nearly 300 of them at Osram Opto Semiconductors in Regensburg.
Quality inspection of H7 car bulbs at the Osram plant in Swabian Herbrechtingen.
Final visual checks on LED wafers at Osram Opto Semiconductors.
Light-emitting diodes (LED) in wafer test.
Organic light emitting diodes: New display technology: For demonstration, there was built in a car-panel an OLED-display. It shows, how organic light emitting diodes brightness and legibility of conventionally displays exceed. The OLED-display will be strong visibly also under direct solar radiation.
This report contains forward-looking statements based on beliefs of Osram’s management. The words anticipate, believe, estimate, forecast, expect, intend, plan, should and project are used to identify forward-looking statements. Such statements reflect the company’s current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Osram does not intend or assume any obligation to update these forward-looking statements.
