Osram sees small sales rise in second quarter

Osram’s turnover rose by one per cent on a comparable basis to almost €1.3 billion (£1.1 billion) in the first three months of 2014, compared to the same period last year.

Sales of its traditional lighting products are in decline, while LED products are growing, and now make up a third of the company’s sales.

The increase over the last three months is mainly due to good performance in the semiconductor and speciality lighting segments. The semiconductor segment reported a revenue increase of 14 per cent on a comparable basis, and is due to open a new assembly plant in China at the end of May.

The speciality lighting segment, which includes car lights and optics, had a revenue increase of 11 per cent.

Osram’s traditional lamps and components segment continued to decline and was down two per cent, while LED-based products now make up 34 per cent of overall turnover. Going forward, LED products will be separated from the traditional lamps and components unit, making up a new segment within the company.

Osram’s financial report says that the company is ‘planning further measures to improve structures and processes [including] the general illumination sales organisation as well as setting up a global shared service organisation, among other things.’

Wolfgang Dehen, CEO of Osram, said: ‘in the recent quarter, we did well in a challenging environment. In light of the decline of the traditional general illumination business, our revenue target has become more challenging.’