The company announced on Friday in Premstätten near Graz that more than 500 employees were affected.
However, some of them might be used in projects for the use of pixel-sized LEDs in the automotive industry, where ams-Osram still sees the greatest opportunities. Investments in technology would be reduced by 120 million euros. Aldo Kamper’s board of directors wants to part with the factory for eight-inch silicon wafers that ams-Osram built for a billion dollars (933 million euros) in Kulim, Malaysia, specifically for the hoped-for order. A new tenant is to be sought for the 400 million euro sale and leaseback contract.
The hoped-for promise did not materialize
In total, the exit from MicroLED technology will cost the company 700 million euros, explained ams-Osram. Around 630 million of these were already booked in the first quarter. In February, the board spoke of up to 900 million euros. According to insiders, the dropped customer, whom the company does not name, is Apple. The LEDs should be used in smartwatch displays, for example. However, the hoped-for commitment did not materialize. The construction of the factory in Malaysia was arranged by Kamper’s predecessor as AMS boss, Alexander Everke.
The exit costs led to a net loss of 710 (previous year: minus 134) million euros in the first quarter. Sales fell by 9 percent to 847 million euros, but were within the forecast range of 800 to 900 million euros. The adjusted operating result (EBITDA) shrank to 124 (151) million euros. For the current second quarter, ams-Osram is forecasting sales of 770 to 870 million euros, with an adjusted operating return on sales of 14 to 17 percent.
On the Swiss stock exchange, ams-Osram shares rose by 1.5 percent to 1.053 francs (1.075 euros) in the morning. The results reported by the company were a tad better than expected, analysts at Erste Group wrote in an initial reaction. Although the outlook signals stagnation in the second quarter, a significant improvement is expected for the third quarter. The bottom line is that Erste analysts see the numbers as neutral for the share price. At the start of trading on Friday, ams shares temporarily rose above 1.10 francs on the stock exchange, but then came back once more. Since the beginning of the year, the shares have continued to be significantly in the red; at the start of the year, ams shares were still trading at around 2 francs.
