FILE PHOTO: The logo of sensor specialist AMS is seen during the annual news conference to present the results for 2019 in Zurich, Switzerland February 11, 2020. REUTERS/Arnd Wiegmann
July 21, 2020
By Alexandra Schwarz-Goerlich
VIENNA (Reuters) – Sensor specialist AMS AG, which just closed the takeover of German lighting group Osram, targets 2026 revenues of more than 10 billion euros ($11 billion) for the combined entity, an internal company presentation seen by Reuters shows.
AMS posted revenues of 1.89 billion euros and Osram of 3.59 billion euros in 2019. This year’s combined revenue is expected to decrease by 12% to 4.8 billion euros, according to the presentation.
The revenue target, which includes takeovers, was presented at an AMS meeting last week, a source familiar with the matter told Reuters.
A spokeswoman for AMS, asked for comment, said in a written statement: “As stated before we pursue a strategy for profitable growth from internal and external sources also for the combination of ams+OSRAM.”
“For this and as stated before, we target a long-term financial model of double-digit revenue growth and strong profitability,” she added.
AMS, which is largely dependent on orders for Apple’s iPhone, hopes that Osram’s automotive and opto semiconductor businesses will help it diversify its own portfolio and sales channels.
The Austrian group said on July 10 that it has closed the Osram takeover and now holds 69% of the German firm’s shares. It put the transaction value at 2.7 billion euros. The amount does not include the cost for more than 20% of Osram shares that AMS bought on the market.
The two firms have provided rather diverging forecasts for the coming months. AMS has been quite upbeat for the second quarter and the second half of the year as demand from smartphone makers continues to be strong despite the coronavirus pandemic. Osram, on the other hand, expects sales in the fiscal year to end-September to drop by as much as 19%.
AMS and Osram are both due to report results for the April-June period on July 29.
(Reporting by Alexandra Schwarz-Goerlich, writing by Kirsti Knolle, editing by Sabine Wollrab, Madeline Chambers and Editing by Maria Sheahan)